USDJPY 11-26-06

11-26-06

USDJPY

The sell off in the USDJPY from 1.1822 to a low of 1.1556 has not been as big as it has in the USDCHF. I did not participate in either short trade.
The moving average on the 60 minute chart is at the top of the 1.1611 to 1.1560 trading range. The USDJPY has a good chance of trading in a
trading range for the first part of the week. It is over 20 pips from the low of the range, so a long trade from the bottom of the range is out.
I am not interested in a breakout trade since the next area of supply is very close.
I would be interested in shorting the USDJPY if it can reach 1.1628 as long as it does not base above 1.1585 before reaching 1.1628.
Use a sell stop at 1.1627 once the USDJPY trades above 1.1628 and a 10 pip stop loss after entry. The first target will be the 1.1560 area.
If the USDJPY bases between 1.1580 and 1.1600, I will short the 1.1650 area instead with a first target of 1.1600.