Markets today have been characterized by some strengthening in EURO the GBP edged slightly lower while the JPY continued to gain some more ground. The US dollar appears to remain steady. These gains that have been observed in the EURO and JPY may be good opportunities to short them.
USDJPY (DAILY) BUY
Staying with the commentary that shorting the JPY may be a good idea I am looking at this setup.
-There is a clear up move that has been observed in the last 2 months
– Trend indicators are pointing Up
-Extreme indicators are pointing Oversold
– Wave indicators are correctly pointing down, as the pair is finding resistance not only at the 91.00 major psychological level but also at the 23.6% Fibonacci level. If this holds we may see a bounce back to 94.80, which is around 300 pips.
Note: A similar pattern appears under EURJPY but you may want to be cautious with going long EURO now.
Read about the Trend/Wave/Extreme system here.