The USDJPY continued to march higher in trading today and has had some success with the extension. However, there is some signs that maybe, the momentum is fading a bit.
Yesterday the pair moved to new highs going back to 2008 and moved above the 105.57 level which is the 61.8% of the move down from 2007 high to the 2011 low. The high in yesterday’s trading stalled at topside trend line resistance (see chart below at 5 and 6 areas). It looked like a peak might have been found.
USDJPY on the hourly chart is trying (and I mean trying) to keep hourly closes below the trend line.
That was not to be, however, as today the price moved above this resistance level (see red area in the chart below).
However, in the last 5 hours, the price has moved back below that old trend line and is trying to keep a series of closes below that line now. I may be trying to see things, but if the price can keep the closes below, perhaps the high is in place.
Admittedly, I was looking for a move lower off the high resistance hold yesterday that did not work out. So I may be forcing the next one too (it is anti-trend). But risk is limited to the last hourly high and would like to see a rotation lower soon. If the high is in place, the 105.69 high from last week and the 105.57 level (61.8% level outlined above) are strong support levels below. It is just a trade.
Do I sound wishy washy….Let’s just say it has just caught my eye and I like it, but am not fully in love with it just yet……So take that as a caveat.
PS just read Gundlach comments from Adam.>> I like that guy too…(I am stepping all over Adam today. Sorry Adam) My ideas are purely short term my friends….
