Tanalys

USD/JPY Erases Over 3 Weeks of Losses in One Day

Daily Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Bigger picture, one must view the decline from the March high as a mere blip in the larger bull move. Extending the range of the corrective decline (96.70 to 92.56) from the high would yields targets of 99.26 and 100.84. The psychologically 100.00 is in the middle of that zone as is the 50% retracement of the decline from the 2007 high (retracement is at 99.85).

FOREXTrading Strategy: The only way to play this now is to wait for a dip into 95.20/70. Even then, the risk is significant. If price can consolidate for several days, then we get a breakout opportunity with better risk parameters.

LEVELS: 94.36 92.20 92.67 96.70 97.78 98.89

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