USD/JPY Follows Through on Breakout

Daily

Chart Prepared by Jamie Saettele, CMT

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-“Range expansion objectives from the December and March ranges are 125.72 and 128.12. Be aware of a long term slope level, especially in light of today’s (6/2) outside reversal. Tops formed at this line in March and July 2013. Bigger tops formed following ‘blow-offs’ through the line.”

-“A bigger top is still possible but the break above short term resistance negates a short term bearish outlook.” USDJPY has completed a head and shoulders continuation pattern with an objective of 128.47. Whether the market makes good on this is unknown. The pattern can fail but reward/risk is asymmetric for bulls against 123. A drop below there would trigger a failed pattern…and signal in the other direction (short).

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