USDJPY 12-17-06

12-17-06

USDJPY

There was no trade in the USDJPY on Friday. The last line from the email on Friday mentioned a possible sharp sell off in the USDJPY if it traded near the 1.1835 area since it has been trading in an area of supply from the weekly chart. The sell off reversed when the 1.1740 area of support was reached, and the USDJPY moved back above 1.1800 by the end of the session. Any pullbacks should find support near 1.1770 followed by 1.1712 from the 240 chart below. I would be interested in shorting a rally up to the 1.1850 area with a first target of 1.1810 and a second target of 1.1773 and a third target of 1.1712 to reverse to a long.