USD/JPY Analysis & Forecast, August 8th 2013 (English Language)

Hello Traders,

As explained in the last interview with Dale Pinkert in the Live Analysis Room on Tuesday August 6th 2013, when I reviewed this pair on the daily and weekly timeframe, if USD/JPY were to lose the 96.71 level we would see a move southwards.

Yesterday that 96.71 level was pierced by price (see below picture):

USD/JPY weekly timeframe August 8th 2013

My model of Program Trading activity on price shows that on the weekly timeframe there will not be support to price until 94.
94 is definitely the next level to watch. This level is the start of an area of support which is going to be tested for the second time, on the weekly timeframe.

We know that second tests are dangerous tests so there is a real possibility that price could slice through the 94 level and move lower into the 91.62 level.

If also that level is lost price is destined to move into the next area of support projected by our analysis at 89.70.

Bottom line: my opinion is that if you are short USD/JPY, you may want to keep your position open and take partial profits at the indicated levels.

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