Hello again.

Here is a screen shot of the USD/JPY daily chart.

We saw a longer term movement down - followed by a retracement up.

So, the million dollar question? Is this retracement over or will it reverse?

Well, we saw it almost touch the 61.8% Fibonacci level and start heading back down. If you view our trend line, you can see we are right on the trend line.

Here’s what you look for. If the currency pair breaks the line and starts to spread away, then your next level to watch will be the 31.2% Fibonacci level (96.00). If it breaks that price and starts spreading away, then look for a nice movement down - keeping in mind it still can potentially reverse on you.

At that point, you can re-analyze the pair and see where we are in the wave count at that point.

Remember to use and apply your money management and place your stops.

Good luck.

Hello everyone.

Let’s go back to some basics with our friend - trendlines. Let’s take a look at the hourly chart on the USD/JPY.

Although you can’t see it, we had a triangle forming and you saw that once it broke the bottom triangle trendline, it went down, came back up to almost the same level and then dropped.

Now, we are approaching another area of indecision. We’ll watch this pair as it approaches the trendline in the yellow shaded area.

The pair may go up to the trendline and keep going, it may hit the trend line and reverse back down or it may not hit the line at all. This gives us a potential area where the currency may hit so we know what to potentially watch for.

Remember, when you are trading to always apply your own money management and risk vs. reward ratios.

Heading into a short week for the U.S. markets due to the Thanksgiving holiday, there will be less volume and you may witness more volatile movements.

Good luck and if we want to wish everyone a happy and safe weekend.