-The most recent FXTW note was “the uptrend that USD/JPY enjoyed since the December 2012 breakout is over. The cross topped nearly 7 months ago at a long term trendline. All of this doesn’t mean that USD/JPY can’t or won’t experience rallies. All of this does mean that rallies should be sold. Be patient and use stops, as outlined in the popular TOST series. As noted in the Q1 technical outlook, a head and shoulders pattern yields a target near 105.” We got a rally! In fact, the rally materialized following a test of the neckline from a year-long head and shoulders pattern. Watch former support (lower parallel from previously bullish market and 55 week average) for resistance.

-By Jamie Saettele, DailyFx.com
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