Normally this would be a great area to have a limit waiting at the low. Play the reaction. However the current correction to the 20 EMA can act as a spring to accelerate the pair through the low. A good breakout pullback trade may be how to approach this low.
Guess it broke above the EMA line last night... so we can expect some bullish days then?
RKchartest
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Its really hard to tell right now. We have some JPY news coming and the pair has respected the Yen more than the USD on this pair recently. On a larger term, we have to break that 107.50 high to really change focus. If both sides are running strong, we may go range bound. It can happen. Play the major levels. 103.50 -102.60 looks like a sticky area. If price breaks that, I think the upper major zone can be used as a target. You can bet that I'll have a limit order waiting at 107.50. To high of a probability for a reaction there.
Allot of the USD pairs have given us some clean entries on support and resistance zones, wait for the pullbacks. Give enough room for volatility spikes. Sometimes I ask myself on large news events. Where should I put my stop? Then that's my entry!