USDJPY 11-21-06

11-21-06

USDJPY

The USDJPY rallied up from the 1.1758 area on Sunday, but it never quite reached the 1.1822 area to enter the short trade from yesterday's email. The high on the day was 1.1817. This will be a problem for anyone using limit orders to enter their trades. On the way higher, the USDJPY based between 1.1794 and 1.1782. This breakout area will be support on a pullback until the demand is absorbed. Since the supply at 1.1822 is so close to the demand at 1.1794, I will pass on the 1.1822 short trade for today. I will wait to short the 1.1845 area.