USDJPY Update--Friday Morning, September 5, 2008
An update on yesterday's post on USDJPY. At that time the USDJPY had pierced the 38.2% level of the entire delta move from the beta low to the 2.618 target met on August 15th. The next target down was the 50% level around 106.60. A sharp move down went through that level and then bounced very strongly off the 61.8% corrective level (which corresponds to the original alpha level. It has since been trading around the 50% retracement level; after the bounce off the 61.8% support the range has been from 107.30 to 106.15. It is likely--after a spike low and subsequent recovery--that we will see the market slowly trade down to test the 105.65 level again.
Shown on an 8 hour chart:
