USDJPY 12-8-06

12-8-06

USDJPY

The USDJPY has based below the 1.1549 area of supply and has formed a breakout area of demand at 1.1526. Since the USDJPY is above the moving average on the 60 minute chart, the 3 to 1 risk to reward counter trend short trade at 1.1549 is out. The most important part of the picture of the chart below is that the low end of the range was raised up from 1.1456 to 1.1474 yesterday. If you do trade the NFP report today, watch the 1.1605 area as resistance on a long trade and watch for a bounce at 1.1491 on a short trade.