Tanalys

USD/JPY Reverses Sharply; Estimated Support at 96.70/90

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The USDJPY appears to have completed 5 waves up from last week’s low with Thursday morning’s spike higher on news. The implications from an impulsive rally are for price to find a higher low (above 95.80) before the next bull leg exceeds 98.64. The drop has trimmed slightly more than half of the rally from 95.80. 96.70/90 is estimated support if reached. Exceeding 98.64 opens up the NFP hourly close at 99.20, which is also the close of the high week for July.

FOREXTrading Strategy: Was trailed out of longs at 97.50. If the impulsive interpretation is correct, then the next leg higher will be either a C or 3rd wave and therefore sharp. Looking for a low at mentioned zone.

LEVELS: 95.80 96.70 96.90 97.83 98.64 99.20

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