USDJPY Weekend summary

USDJPY;  The strength of the USD v JPY helps to get a feel for the relative strength of the 'JPY' element in the EURJPY pair. In simple terms, a move up in the USDJPY would suggest JPY weakness providing a counterweight to any fall in EURUSD (representing EUR weakness) or alternatively enhancing any rise (representing EUR strength vs the USD).

Given the EURJPY has been in a consolidation pattern along with the EURUSD, it is of no surprise to find the USDJPY in a similar pattern. This however, looks the least complete pattern of all and I have not attempted to add a count yet, although expect it is a wave 4 or 'b' wave.

The monthly Ichimoku shows the pair at a particularly interesting juncture, with price up against the 52week Senkou B. The 1 month momentum study is pulling back in this corrective pattern, but the remaining studies look bullish to me.

The weekly Ichimoku shows nothing bearish at all, with the 1 week momentum study already well through its corrective phase, causing nothing but sidewards PA. Obviously the 100.00 Harmonic Octave is a key zone of defence but a breach uphill will be climatic in view of the 1month chart.

The 4hr Ichimoku shows an ending diagonal breaking down into the cloud but again nothing more than a retracement at the moment and nothing to support an overall bearish stance in the EURJPY, especially with EURUSD looking ready for a rise. The momentum nest does not look done yet to the downside, so I anticipate further downside foraging early week, but I am looking to buy EURJPY when this pair looks oversold.

The 2012 annual hi-lo Gann Grid shows price hitting the 45 degree line and bouncing fearlessly, with a bearish Hull 200MA and an overbought daily momentum study. However, for now price is above the 25day and 50day FLDs and the 2&3day momentum studies look like they could go either way. All in all, I am more interested in following USDJPY down to better time purchases of EURJPY longs.