Market View and Analysis – USDJPY

Market View and Analysis – USDJPY

Today we will be looking at the USDJPY, this had been a difficult pair in recent weeks with the Yen moving sideways. With decent US economic data, combined with continued BoJ’s easing policy pushed USDJPY higher from 2012-2016 but it’s now balanced as the Fed is at the end of its hiking cycle. 

Monthly Overview

We will start on the monthly chart, mainly to note last months candle rejection, we did not quite make it the support of 104.80 area. But only a few days into this month and we are engulfing the monthly candle. 

We will also just point to resistance of 110.47 and the 23.6% fib of 114.36 which over the last year has been capping price. 

Weekly Overview

We will look at the weekly chart to focus in on the recent fall from 114.40 area to the spike down that did not quite make support.

But 108.51 become important as was the close of week 1 and then the low of week 5, plus we had indecision candles over the last 2 weeks. 

4 Hour Overview

We move down to the 4 hour chart and see that price has been moving sideways making the market difficult in a medium-term picture to trade. 

But over the last few days, we see the 50% fib of 109.82 break and we will look for this to hold and then look for resistance to be tested at 110.47 area. 

1 Hour Overview

We move to the 1 hour chart to look at the recent move up and note the 23.6% fib fits well with the larger time frame 50% fib at 109.82 if this holds and the upper trendline of the pennant is broken we could see 110.16 and then the 110.47 area. 

Trade Idea

We will be looking for a Buy trade on the USDJPY.

We will be trading a break of resistance and a small upper pennant trendline

We are trading off the 1 hour Chart.

We will have an appropriate trade size for our account!

Our entry will be ideally above the 110.00 area

Our stop loss will be 25 pips from entry.

Our target will be 110.16 and 110.47 area. 

Happy Trading!

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Simon Cotterill

After a long break to revamp the company and provide a new offering we have launched our new website and products! Please check out http://www.sctrading.co.uk Follow me on Twitter as I am going to be posting some reports and trades: https://twitter.com/SimonCTrader The new website will launch at www.sctrading.co.uk To subscribe to our New Daily Trade Reports for a free 7-day trail, please visit www.sctrading.co.uk/subscribe If you have any questions, please contact us on info@sctrading.co.uk and one of our team will get back to you.