USD/JPY Coming To The End Of Correction Phase
Jason Sen | Jan 06, 2017 12:23AM ET
USDJ/PY coming to the end of the correction phase now. Good support at 115.15/10 where we exited our shorts has held perfectly. We want to try longs from here down to strong support at 114.75/65. A low for the correction is expected here so this should be an excellent buying opportunity. However, with NFP we need wide stops below 113.90. If we do bottom today as expected the bull trend should resume so hold longs over the days and weeks ahead to take advantage. A weekly close below 114.00 however is a short term sell signal and targets 113.50 then 113.10/00.
It's entirely possible that the 115.15/10 support marks a low for the correction. We are in a bull trend and if this resumes from here we will target 115.55/60 then first resistance at 115.85/90. If we are to have one more leg down in the correction we should top here initially. However a sustained break above 116.00 targets minor resistance at 116.40 then strongest resistance for today at 116.85/95. However shorts would be risky in the bull trend. A weekly close above 117.30 would be further bullish confirmation for next week.
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