USD/JPY Turned Back by 2008 Gap but 104 Holding
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-USDJPY has responded to the previously uncovered close from Oct 2008 at 105.30 (high was 105.43). In fact, an outside day reversal unfolded on 1/2. While the trade may be ‘crowded’, the market is holding up in the vicinity of the 12/23 low.
-Failure to hold Monday’s low (103.90) could open up the ‘spigot’ and send prices tumbling to 102.50 or 101.50.
Trading Bias: Limit hit at 105.10. New order to go long at 104.25, stop 103.85, target 106.95 (measured move).
LEVELS: 102.50 103.37 104.03 | 104.79 105.39 106.13
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.