Update for: 2010-07-26 - 2010-08-01
USDJPY: 87.45 Short-Term Trend: downtrend
Outlook: USDJPY traded in a very thight range last week between 86.30 and 87.50. Considering the previous sharp move down from July's 2010 top, that consolidation looks only as a pause here before another decline takes place. The market remains oversold, but that by itself does not mean a buy. Thus, since the trending conditions and the wave structure suggest another decline, this is what we expect for the coming week. First though, the market may attemp a brief rally twd 88.00/20. If such a rally develops, it may be a good shorting opportunity. The key resistance is the July's top (89.14) and only a move abv there will negate the afore-said bearish view. You may also take a look at a new video, that discusses the potential change in the Medium-Term trend in USDJPY and the most appropriate trading tactics to approach a weak downtrending market. You can watch this video here. .
Strategy: Shorts favorable at 88.00. Stop=89.50. Target=84.00
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