USD/JPY Weekly Outlook and Trading Idea

By Roger Baettig | December 19 2011 3:51 AM

Main analysis

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Update for: 2011-12-19 - 2011-12-25

Posted on: Saturday, 17 December 2011 22:47

usdjpy

USDJPY: 77.75

Short-Term Trend: sideways

Outlook:

Nothing new here except for the fact that the daily chart has become oversold as measured by the Stochastics indicator. Actually the Stochastics indicator even tries to move to a sell signal. We still favor a Contracting Triangle here as shown on the chart. The question is, is this Contracting Triangle almost complete or in its early stages of development. In either case, a move abv 79.50 is not expected, so one can favor the downside as long as this level holds as resistance. To confirm the bearish scenario shown above, a decline below 76.55 should be seen.

Strategy: Shorts favorable here against 79.60. The downside target is near 69.00 eventually.

Next Update: Mon, 12/26/2011. I wish everyone a Merry Christmas. Be inspired and inspire others to make changes in their life! Alexander

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