Author Note: 1 February 2016/10:05 p.m. ET
A series of a-b-c wave sequences… after the sharp rally on Friday, on news of the BOJ deciding to move to negative interest rates on new QE, there was no follow-through in USD/JPY. We have been seeing a series of a-b-c waves; Friday’s rally extended to a key level—maybe Mr. Market going to wrong-foot the crowd here?Is the move by the BOJ more really matter?
Daily momentum is fading and there was divergence on the 4-hour chart as prices rallied into the near-term high; often an indication of at least a near-term correction lower… if we get stopped into this trade I will look to reduce risk asap… risk reward is quiet good if Mr. Market was head faking…
USD/JPY Daily: Three –wave moves…latest rally is in three waves with oscillator moving into “overbought” territory.
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