We can see that USD/JPY sellers took over when the 78.80 area failed to break higher. We may continue to see more movement down to 78.00, which is a strong area of interest that held as support/resistance as recent as late July. I especially like a continuation of USD/JPY weakness after Fed Chairman Bernanke made a case for more QE on Friday. This effectively leaves the Japanese Yen as the only major "safe haven" currency--at least with no major news expected from Japan in the short-term. Also, fears of global slowdown after recent weak economic data favors more capital flowing into Japan's capital markets.
So, I'm looking to short this pair on a retracement back up to the minor support area that held well last week and target the major support area mentioned earlier. My stop will be above just above last week's high.
Good Luck All
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