FOREX Technical Analysis: USD/JPY Inside Week Presents Trade Setup
Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: The USDJPY was unable to exceed its prior week’s high (inside week was made too), which is significant when viewed in light of WHERE the USDJPY is right now. Yes, action since October 2011 could be the major long term bottom that many are looking for but other possibilities exist, notably a triangle. In fact, movements in both directions since the 2011 low consist of 3 waves, which is consistent with a triangle. Alternating legs in triangles often relate by a Fibonacci 61.8%, which is the case right now. Digging even deeper, the rally from 7712 subdivides into 2 equal legs (consistent with a correction). Not shown is the 78.6% retracement of the decline from 8417, at 8266. Of note is the potential head and shoulders neckline, at 8313 next week. COT positioning is not to be ignored.
FOREXTrading Strategy: The inside week offers an opportunity to short on intraday setups against the recent high of 8283).
LEVELS: 8113 8158 8207 8247 8302 8355