FOREX Technical Analysis: USD/JPY Trades to 90 For First Time Since June 2010
Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: “The first trading day of the year (1/2) has produced the month to date (and year) low. In other words, the opening range for the month and year has been broken to the upside so it’s possible that the monthly and even yearly lows are in place.” I wrote yesterday that “this latest drop may be the first (wave A) of a 3 wave corrective drop that ends above 8653. The rally from today’s low probably creeps higher before finding resistance near 8900.” The rally crept higher and then exploded into new highs. 90 is round number and perhaps resistance from a psychological standpoint as well as the measured move from the 8841-8683 decline (8841-8683 + 8841=8999). CME volume for Yen futures was the highest since the October 31, 2011 coordinated intervention. While the larger trend is up, the volume figure suggests at least near term capitulation.
FOREXTrading Strategy: Flat for now…I want to be short near term but don’t have the proper setup…yet.
LEVELS: 8824 8878 8926 9050 9100 9163
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