USD/JPY Weekly Outlook and Trading Idea

Outlook: The prices broke below 79.70 support level and thus the daily trend is now considered on the downside. If the presented triangle on the chart above is indeed correct, then a move to new lows below 76.00 will be expected in the next month or so. The daily oscillators have become oversold though and thus we cannot rule out some sharp but short-lived rallies. But overall, the bearish case remains intact as long as the prices stay below 80.30/35.
On the upside, a move abv 80.30/35 will indicate the presented analysis is wrong and will signal a rally back twd 82.25 level is likely under way....

Strategy: Holding short from 79.69 is favorable. Stop=80.40. Target=75.19.

Next Update: Wed, 07/20/2011, 09:00 - 10:00 CET

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