Yes, my first thoughts as i sat in the chair this morning and looked at my USD/JPY charts was, sell, sell, sell! I like the way the hourly is looking and there is every chance that we no longer get back above 99.00 and in fact head back to 94.50 during the next couple of days.
A look at the daily chartalso indicates another test of 96.50 with the 200 day moving average offering solid resistance on the topside with pretty much every technical study i have included turning down from overbought levels. The only thing we don’t have going for us is the support of the moving averages, but hey, you can’t have everything, especially on a Monday in Asia.
What do we do with this information?
Sell USD/JPY here at 98.25, and again at 98.80 with a stop above 99.60 to give us a little extra room. Remember we are looking for 96.50 if not 94.50 on this move. Cover on approaches to 96.50 and go with the break below.