Tanalys

USD/JPY Double Inside Day Trade Setup

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: The USDJPY has declined for 4 consecutive weeks. In fact, 4 week rate of change (see weekly report for chart) can be considered extreme at these levels. In the last 10 years, 4 week rate of change has only been lower just once; the week that ended 10/24/2008. Slightly less extreme RoC figures were registered in May 2006 and March 2008. A final washout into slightly lower levels isn’t out of the question. Specific levels to keep an eye on are 92.55 and 91.96. Watch the downward sloping corrective channel as well (blue). On the upside, 96.95 is a significant level (big volume close) as is 97.52 (4/5 and 6/7 closes…both were followed by gaps higher). Friday’s DailyFX PLUS webinar provides additional detail. Of note is today’s double inside day. This is the first such instance since 2/27.

FOREXTrading Strategy: Long while above 93.75. Will look to add above 96.63. Targeting 98.75. If stopped out, then look for a low at 91.96-92.55.

LEVELS: 91.96 92.55 93.68 95.36 96.01 96.62

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