Main analysis

Update for: 2012-05-14 - 2012-05-20

Posted on: Sunday, 13 May 2012 10:37

usdjpy

USDJPY: 79.92

 Short-Term Trend:  weak downtrend

Outlook:

USD/JPY has moved briefly below 79.50 and that's an indication that the move up from this year's low will likely be retraced more than 61.8%. Right now the daily trend is considered on the downside, but I don't expect to see a huge move lower. Once the trendline drawn on the chart above is broken, I will assume that the next leg up of the new bull market has started.
On the downside, there is no particular level that will negate the above bullish view, but if we see a deeper pullback from here, lasting a few more weeks, that will most likely require a modification of the presented wave count.

Strategy: The previous long from 81.30 was stopped out at 79.50. Stay out.

Next Update: Sun, 05/20/2012.



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