North American markets are a little uninterested this morning as a variety of factors have investors paying attention to other matters outside of the trading world. While the Greek election over this weekend was a significant market mover, newsworthy headlines have been few and far between since SYRIZA took their victory lap as nothing too significant is scheduled for release. In addition, the east coast of the United States is battening down the hatches in anticipation of getting up to two feet of snow as a Nor’easter meanders their way, meaning Wall Street is likely a little preoccupied. Due to those factors, the rest of the trading day may be a grind as liquidity takes a small hit.
Despite the lack of potential interest from the New York area, the market is still providing trade opportunities, and one in particular has caught my eye. Last week, I wrote about the USD/JPY approaching a declining trend line that had thwarted attempted rallies for pretty much all of 2015 so far. Just as it had done previous to then, the currency pair fell over 150 pips after reaching that zenith. Today brings us another challenge of that trend line, and perhaps another opportunity to see it rejected.
While seeing the effectiveness of the trend line thus far is a compelling visual as to why history may repeat itself, another argument would be nice. Luckily, we have one for this pair as the 78.6% Fibonacci retracement of the most recent high to low has been touched. If the trend line and Fibonacci levels remain true, the resistance may be too much for this pair as another rally is rejected once again.
_20150126161821.png "USDJPY")
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