Tanalys

USD/JPY Wedged Between Trendlines; Careful on Chasing Moves Here

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The USDJPY has broken a steep trendline and is just below the line that connects the tops since THE top. The 20 day midpoint was reached today at 98.18, although the 50% retracement and breakdown level at 98.75/85 is still of interest. Look for support at the FOMC close hour of 96.41.

FOREXTrading Strategy: Would buy on weakness for test of 98.28 or a run at 98.75/85. Expecting support at .9640 area but not dismissing levels getting overshot in this market…so keep the breakout level of 95.80 in mind as support too. A 50% retracement of the move up is 96.03. Stops should be under 94.80

LEVELS: 95.80 96.41 97.02 5 97.85 98.28 98.75/85

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