Weekly Outlook: USD/JPY Declined Below 97.50
Trend Recognition | Oct 28, 2013 02:19AM ET
USD/JPY: 97.41
Short-Term Trend: sideways
Outlook: The USD/JPY declined below 97.50, and our long idea was stopped out. However, the prices have remained above the key 96.55 support. Therefore, both the bearish and the bullish scenario presented on the chart above remain valid and almost equally possible. So, we have to wait for a breakout. A move above 100.60 will confirm an upside breakout, while a move below 96.55 will confirm a breakdown. Once that happens we can expect sharp moves of at least 300-400 points in the direction of the breakout.
Strategy: The hypothetical long from 98.50 was stopped out at 97.45 with 105 pts loss. Now, longs are favored on break of 100.60 with 150 pts stop and shorts are favored on break of 96.55 with 150 pts stop.
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