Last updated: Wednesday, February 24, 2010
I like the downside in the CADJPY as a longer term trade. The advance from 8235 is larger wave 2 (or B). After trading just above a resistance line, the CADJPY reversed and the decline is in 5 waves. I am targeting a break below 8200. The pattern in crude oil supports my bearish bias; an expanded flat is probably complete in crude. I wrote last week that “if this is the pattern unfolding, then price would exceed 7804 before the larger trend turns back down.” I favor the downside against 8078. Coming under 7613 would probably be enough to suggest that the larger trend has turned down.
