USD/JPY News Spike and Bearish Reversal is Possible
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The USDJPY rally from 90.84 is an ending diagonal (wedge). Such patterns are usually resolved violently and often fully retraced. An outside reversal week on a slightly less than record week of volume is consistent with an important top. Near term, a push above 102.58 could complete a flat correction from the 5/23 low. Given the volatile nature, I’d not be surprised to see a push above 103 on news tonight before a reversal. A new high opens up 104.08 and the diagonal resistance line near 104.80.
FOREXTrading Strategy: Shorting above 103 (103.10/15 is estimated resistance), stop 103.80, target open.
LEVELS: 99.94 100.40 101.26 102.58 103.15 103.73