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With the trend firmly lower across the board on the USD/JPY there are a number of mark down cycle opportunities to consider.

11-24-2009 9-19-57 AM.gifLooking short term at my five minute intraday trading strategy which capitalizes on corrections on trends, the USD/JPY has been reliably triggering shorts “between the greens”. This set up is only valid if the trend is down as indicated by the 34ema Wave heading lower in a “four to six o’clock” Wave angle.

The current bounce is the most recent short trigger and I’m watching the 89.50 major psychological level closely as the U.S. equities market us about eight minutes from the open. Remember that when you’re trading the USD/JPY, the risk appetite/aversion of equities will be a major factor. The current downtrend reflects that the yen continues to rally against the U.S. Dollar. The downtrend on the other (longer) intraday time frames are setting up swing shorts. Near term opportunities can be seen on the 15 and 30 minute charts where bounces up to the 34ema low could be shorted. Because of the fast sell-off in the USD/JPY, the 15 minute is likely your best bet.

11-24-2009 9-25-56 AM.gif

This chart was created with MT4 and the Autochartist Chart Pattern plug-in.

The 34ema low is at 89.59 but feel free to step out in front of this level and use the 89.50 psych level as resistance.

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.