Main analysis

Update for: 2012-09-17 - 2012-09-23

Posted on: Saturday, 15 September 2012 16:36


USDJPY: 78.38

 Short-Term Trend:  sideways


Now, the wave structure of the decline from the Mar 2012 top starts to look clearer with last week's price action. The breakdown (below 77.90) did not produce anything significant on the downside as the prices quickly returned into the previous range zone. That is a clear indication that the prior range trading was a limiting Contracting Triangle (you can learn more about this concept in the Matering Elliott Wave book by Glenn Neely).
Now, if the market moves above 79.00, we will have a signal that the entire decline from the Mar 2012 top has already ended. A move abv 80.61 will finally confirm this bullish view. With that in mind, going long on break abv 79.00 makes sense to me.

Strategy: Longs favored on break of 79.05 with 150 pts stop.

Next Update: Sun, 09/23/2012.

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