Technicals | Feb 27 2013
After a sharp US dollar sell-off, the USD/JPY has consolidated and formed an "inside day" at the bottom of the previous bar. To the TechWizard, this is bullish dollars (bearish yen) as it shows you that the sellers have run out of puff and failed to make a new low. So recent selling really just reflects profit-taking and trailing stop-losses being triggered (most algorithmic trading robots have them) rather than fresh selling.
To confirm this , the Wiz's view is that if the USD/JPY breaks 92.80, 5 pips above yesterday's high, it will confirm that this serious dollar uptrend (yen downtrend) has resumed its course and we will be targeting 94.30 and above thereafter.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
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