CLOSE ABOVE TREND-LINE RESULTS SHIFTS OUTLOOK; LOOKING TO BUY
Usd/Jpy: What a difference a day makes. We had established a short trade on Friday with the market so heavily overbought intraday and testing some shorter-term trend-line resistance off of the 101.45 2009 highs. However, gains continued to extend into the afternoon, resulting in a parabolic rally that had closed above the trend-line. This was not the outcome we were looking for and as a result, exited the trade this morning on the pullback into the low 98.00’s for a small loss. We view the close above the trend-line on Friday as significant, with the move likely signaling additional upside over the coming weeks, back towards next key longer-term falling trend-line resistance just over 100.00. As such, we will now look for an opportunity to reverse and get long on a dip below 98.00 on Monday. We will use the 50-Day SMA as a point of entry. Strategy: BUY @97.60 FOR A 100.00 OBJECTIVE, STOP @96.40. Recommendation to be removed if not triggered by NY close (5pm ET) on Monday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail [email protected] and you will be added to the "distribution" list.
Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)
“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Cross Country” – A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates.
Monday-Friday (between 10:30am-11:30am EST)
“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
