I’ve been watching this range today on the USD/JPY. With the Dow taking a breather today the dollar-yen has been range-bound.
With the current ceiling near at the 94.80 minor psych level and the support waiting down at 94.00, I’m watching the see if there is anything that can be set up off the 94.80 level since it appears to be a decision level. For me that means that there is enough psychology built up there that a trade would follow through…now the question is to short off the ceiling or wait for a breakout. The market cycle on each time frame will shed some light on that.
Here’s the 60 minute chart that I am watching for a swing going into the Sydney open and Asian session:
Now the chart may look squeezed in and that’s because in order to get the lookback in and the correct Wave angle reading, that’s the initial view I need. Here’s the zoomed in look at the set up:
This shows prices are at the at the bottom line of the Wave right now and this means the swing short has triggered at 94.65 which is the 34ema low. The initial downside targets are 94.20 and 94.05. The point of validity (initial, risk-based stop loss) is 94.91 but for those of you who want to use the “00” as a backstop will want to move that to 95.05.