I like my support levels to hold almost exactly to the last pip and USD/JPY failed to do so last night, breaking below the 88.40/45 break-up level from Friday last, putting in a low at 88.16. The market has closed the NY session exactly on this previous pivot level and I suspect that we are now in for a big move, although I’m not overly sure which way we’re going to go. The weight of selling above 90 on Monday and the price action over the last few weeks still suggests to me that this market could fall further. On the other hand, the change in sentiment regarding the USD would imply that USD/JPY should go higher. I will sell an intraday break below the overnight 88.16 low and keep tight trailing stops in place above the pivot.
Good luck today.
