USDJPY River Theory
Posted: Wed Mar 07, 2007 12:44 am
Yesterday, I recommended an aggressive long trade out of the 115.68 level back to River at 116.51. This is exactly what happened and hopefully you booked 85 points or so on this trade.
River level is 116.86 today and this level will need to be resolved. A move out of this area should determine the next significant move in this pair so be alert and get set up with proper risk.
The monthly price distribution is out of balance on this pair and my bias is for continued USD strength in the short term. Please refer to the monthly PDA chart for reference on this.
So how do we trade?
Aggressive traders can set up shorts on a continued move into River at 116.86 with Risk just above this level as any significant intraday move through this level points to additional upside. Short targets are 115.68 and 114.73 where I would cover.
A move above and through River and I would establish longs with Risk under Zone -1 at 116.63. Ideally you would be able to establish longs on an intraday pullback to the 116.86 area. Upside targets are 117.99 and 118.57.
NEUTRAL UNTIL RIVER IS RESOLVED AT 116.86
River level is 116.86 today and this level will need to be resolved. A move out of this area should determine the next significant move in this pair so be alert and get set up with proper risk.
The monthly price distribution is out of balance on this pair and my bias is for continued USD strength in the short term. Please refer to the monthly PDA chart for reference on this.
So how do we trade?
Aggressive traders can set up shorts on a continued move into River at 116.86 with Risk just above this level as any significant intraday move through this level points to additional upside. Short targets are 115.68 and 114.73 where I would cover.
A move above and through River and I would establish longs with Risk under Zone -1 at 116.63. Ideally you would be able to establish longs on an intraday pullback to the 116.86 area. Upside targets are 117.99 and 118.57.
NEUTRAL UNTIL RIVER IS RESOLVED AT 116.86