Update for: 2011-02-07 - 2011-02-13

Posted on: Sunday, 06 February 2011 18:33

width=650

USDJPY: 82.16

 Short-Term Trend:  weak downtrend

Outlook: Now, the daily chart is finally oversold (at least as measured by the daily Stochastics indicator) and the trend is defined as weak downtrend. Under this trend definition we can now justify a long positon since the wave count presented on the chart says, USDJPY has already bottommed out! Still, to confirm a trend reversal, the prices have to climb abv 83.80 1st and then abv the important 84.40/50 resistance. Until that happens, there are still some hopes for the bears too. But these hopes will become reallity only if a drop below 81.00 is seen....

Strategy: Longs favorable at market. Stop=80.90. Target=89.00

Next Update: Wed, 02/09/2011, 09:00 -10:00 CET