Trade view /
06 April 2017 at 7:06 GMT
It does not look like the selloff in USDJPY has come to an end, yet.
Monthly – The monthly chart highlights a bullish reverse Head and Shoulders. A break of 126.60 is needed to confirm the outlook. The most important factor here is the Marabuzo support from November 2016 seen at 109.62 (half net gains from 104.81 to 114.44).
Weekly – The move lower from the 118.65 high (week beginning December 12) has been mixed and volatile, common in corrective formations.
Daily – We are moving lower in the AB=CD formation. Note: AB in 5 waves, BC in three waves, CD in three waves. A common corrective structure.
Intraday (two-hours) – The intraday timeframe highlights an AB=CD formation down to 109.53, just below of the Marabuzo level. A correction count is seen on the intraday chart so we look to short USDJPY at our bespoke level of 110.75. This offers good risk/reward on the next leg lower.
Management and risk description
selling at 110.70-75.
109.70 and 109.50.
— Edited by Martin O'Rourke
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