Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: “If USD/JPY weakness is a 4th wave, then price needs to stay above 7982 (allowing for a spike is ok). The response just below 7927 (and right at estimated 7907 support) is a good start. Keep in mind that 4th waves are often more complex than 2nd waves thus we could be in for sideways trading for several weeks too.” The rally today leaves the USD/JPY just shy of the highs.
FOREXTrading Strategy: 8042/47 is resistance before the high and I’m on the lookout for exhaustion and a top the rest of this week. Even if the rally from 7712 is unfolding as an impulse (5 waves), the USD/JPY is likely to reverse after trading above 8067 (completing 5 waves). COT positioning is consistent with turns towards Yen strength.
LEVELS: 7964 7985 8005 8057 8067 8100