Tanalys

USD/JPY Dip Sought for Re-Entry on Longs

Hourly

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-The USDJPY decline from 103.37 is corrective and most of the drop has already been retraced.

-One of my favorite ‘trend extension’ setups is the construction of a 3 point triangle (contracting boundaries but with just 3 legs). A drop from before the high that finds support before 101.61 could satisfy requirements.

-A bullish objective of 105.12 is derived by calculating the measured move from the 103.37-101.61 dip. A close from Oct 2008 remains uncovered at 105.30.

Trading Strategy: Looking to re-enter longs (trailed out at 102.20 last week). 102.45/70 is estimated support.

LEVELS: 101.81 102.43 102.70 | 103.37 103.73 105.12

— Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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