Main analysis

Update for: 2012-12-31 - 2013-01-06

Posted on: Saturday, 29 December 2012 11:06

usdjpy st 20121229

USDJPY: 85.89

Short-Term Trend: uptrend


USD gapped up on Monday and rallied for entire week. Then on Friday a small reversal occured as the prices made a top at 86.62 but closed near the lows for the day. The daily chart of course, remains as bullish as before but based on the extended rise, we cannot rule out a downside correction now. In fact, a correction becomes more likely with each day. A move below 85.50 will actually signal that such a pullback has started and weakness twd 83.80 may be expected in this case.
From a trading perspective, we now have a tough choice: either to tighten the stop just below the market, or to risk a bigger part of our gains. You can make your own decision based on your risk tollerance and the amount of this position in your portfolio.

Strategy: Holding long from 81.30 is favored. Stop=85.40

Next Update: Sun, 01/06/2013

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