May 12th – USDJPY

Nothing to add to yesterday’s comments. Despite the attempt to continue lower, prices still found support at the lower boundary of the channel and were unable to break the low of 143.45. If such a break occurs, you need to look for selling opportunities again.

“Our sell decision yesterday worked beautifully, but now you need to take partial profits and lower the stop in the rest of the position to break even. The reason is because this decline could still be a wave B or X of a still larger correction. We need the break of the lower boundary of the corrective channel and the low of 143.45 to have more confidence.

NOTE: If you’re in a long term position your stop should be 138. If that were to be taken, we would not lose anything but almost all the profits we have accumulated will be gone. I still like the idea of having lowered the risk of the long term position and locked in some profits.”

Houssine

Prof. Aldo Lagrutta is an awarded Certified Financial Technician from the International Federation of Technical Analysts and holds several financial market designations, including the coveted Certified Elliott Wave Analyst.

He is a also a member of the Society of Technical Analysis, holds the CFT’e and is a recipient of the Bronwen Wood Prize bestowed by the Society of Technical Analysis in London.

Prof. Aldo Lagrutta grew up as a music child prodigy and became the youngest Professor to teach in several universities and conservatories around the world. He performed for 2 decades as a concert guitarist in Europe, Africa, North and South America.