COMPELLING SHORT-TERM CONFLUENCE ABOVE 97.00; LOOKING TO SELL
Usd/Jpy: Although the market has broken higher on Wednesday to trigger an inter-day double bottom, we do not see gains ultimately extending much beyond 98.00 and favor the idea of looking to sell into the current rally. We are looking for the current up-move to stall out by former support just over 97.00 from June 9, 10, 11, which also happens to coincide with the 61.8% fib retracement off of the most recent 98.90 to 94.90 move. The average daily range for the pair comes in at 117 points, which projects a daily high on Wednesday that also directly coincides with the mentioned fib retracement. As such, we will look to sell into this technical confluence above 97.00 today, in anticipation of some bearish resumption back towards 94.90. [B]Strategy: SELL @97.35 FOR AN OPEN OBJECTIVE, STOP @98.35. [I]Recommendation to be removed if not triggered by NY close (5pm ET) on Wednesday.
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Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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