Tuesday, September 22, 2009

Cable And USD/JPY Retracement Analysis

Above is Cable 4 hour chart. The pair managed to touch the neckline/support before closing above 23.6% Fibo level again. A retracement for 50% of 'e' to 'f' is likely to happen. However, the pair need to get back inside the broken channel first. Other wise, clear break below neckline will surely trigger massive selling toward 1.569 (38.2% Fibo) and 1.5272 (50% Fibo).

As for USD/JPY, it managed to closed above 50 EMA after an unconvincing channel break late Friday last week. The pair went as high as 92.53 before bounced back to 92 area. If the first correction wave 'a' has finished at 92.53, wave 'b' is expected until 50% to 61.8% Fibo retracement of wave 'a' before completing the third and final correction wave.

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