USDJPY 12-10-06

12-10-06

USDJPY

On Friday, I wrote to watch for a bounce at 1.1491 on a short trade. Hope you did. The USDJPY rallied up to the 1.1638 area of supply with no pullback. The 1.1666 area of supply is fresh and should produce a sell off the first time that the USDJPY trades up to it. If the USDJPY rallies up to it on Sunday, then it should form a trading range between 1.1620 and 1.1670 if the USDJPY is going to move higher from here. If 1.1620 does not hold on the bottom, the USDJPY could fall back to the 1.1560 - 1.1550 area. I will wait to see what kind of range forms on Sunday and Monday before I trade the USDJPY again.