Daily Bars

eliottWaves_usd-jpy_body_usdjpy.png, FOREX Technical Analysis: USD/JPY Responds to 20 Day Average and Trendline

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREXAnalysis: ‘The current level is defined by the 1/4 high (8840), 1/16 low (8778), a multitude of trendlines, and the 20 day average. Daily RSI is nearing its own support zone of 50-60 and the lowest level since 12/04.” The rally since mid-November probably needs to correct more than it has but it’s also unlikely that this well-defended level gives was to bears on the first attempt.

FOREXTrading Strategy: I wrote yesterday that “the next move is probably from the long side but from slightly lower levels, towards 8963.” The USDJPY dipped to 8805 during early European trading before rebounding. Look towards 8915/63. Near term support is 8835/45.

LEVELS: 8778 8805 8840 8915 8963 9024