USDJPY - Where I'll be buying
After nine consecutive weeks of gains, USDJPY is seeing some necessary downward price action on the back of profit taking and risk-off sentiment in global markets. How long will this sell-off continue, and where is the best place to go long? What I'm watching is the big 100 level on a weekly chart. There is a confluence of Fib support (50% of the 2007 high/2011 low) and major trendline support near that level, which I hope to see tested once again for a long-term (weeks/months) buying opportunity. The trendline has been tested multiple times, and has not only held, but provided major bounces for the pair. I hope that the fourth test is the charm to give price the strength needed to break through major trendline resistance seen on a monthly chart (currently above 106).
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