Daily Technical Update
February 1, 2010
USD/JPY Kilroy – Reverse Head and Shoulder



* Daily: There was anticipation for bottoming action at the 88.30-88.80 level. (Refer to Daily Technical Update 1.29.2010 USD/JPY). In that post, a decline was projected after a completed bearish Gartley.
* However, price action is telling us otherwise – that the market is already ready to continue the rally from the 89.10 area. A swing projection brings the pair to 98.00, which occur after breaking up above a “Kilroy” or an upside down head-and-shoulder pattern. The kilroy was a famous WWII cartoon that pictorially represents reversed head-and-shoulder.
* 4H: The first chart below is the original projection, for which there was no signals for.
* The second one, is an adjustment due to the price action that established a kilroy in this time-frame. Remember the fractal nature of the market.
* At the very least, the market is showing reversal readiness, which spells continuation rally.




Fan Yang
Currency Analyst
Commodity Trading Advisor

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