USDJPY: Weekly Outlook

January 5, 2014

AFTER THE FEDS ANNOUNCEMENT ON WEDNESDAY DEC 18 2013 TO LAUNCH ITS BOND BUYING PROGRAM IN JANUARY 2014 THE MARKET RE-TRIGGERED A CONTINUATION OF THE RALLY FROM 102.757 TO 105.425…

THEN FOLLOWED BY A DECENT RETRACEMENT CAUSED BY THE EFFECT OF THE UNEMPLOYMENT CLAIMS RELEASED ON THURSDAY JANUARY 2 2014 WHICH OCCURED FROM 105.425 TO 104.063..PRICE 104.063 HAPPENED TO BE A 50.0% FIBONACCCI RETRACEMENT RATIO DRAWING YOUR FIBONACCI FROM POINT 102.757 TO 105.425..

A PRICE REJECTION PATTERN THEN EMERGED AT 104.063(fib 50.0%) AND THEN PRICE STARTED HEADING NORTHWARDS AGAIN..THIS DIDNT GIVE A TOTAL GO AHEAD TO BUY TILL BERNANKE COMMENTED THAT USD ECONOMY IS IN RECOVERY WHICH GAVE A GO-AHEAD TO BUY

A REASON WHY I FEEL BUYING THE USDJPY SHOULD BE LIMITED TO 105.40 IS BECAUSE HE SAID THAT THIS RECOVERY ISN’T YET A FULL GUAURANTEE TILL UNEMPLOYMENT STATISTICS FALLS BELOW 7.0%…A RELEASE OF UNEMPLOYMENT STATISTICS BELOW THIS FIGURE WILL CONFIRM USD’S ECONOMY IS IN FULL RECOVERY

TRADING RECOMMENDATION(IF NO MARKET GAP OCCURS)

CONSERVATIVE ENTRY: BUY USDJPY AT MARKET OPEN WITH STOP LOSS @ 104.35 AND TAKE PROFIT 105.40

AGGRESSIVE ENTRY : BUY USDJPY AT MARKET OPEN WITH STOP LOSS @ 104.00 AND TAKE PROFIT
@ 106.50