USDJPY long at strong S&R area
Updated
USDJPY to long from 112 area sue to technical analysis of weekls support and resistance area.
Fundamentally the USD is at an area of contention with rate hike chat and some positive data sets. Keep an eye on the
TNX chart to see an early indication of yield which can lead where the USD is going. Wage growth yet to be commented on in both economies. JPY strength at the moment due some speculation of QQE back off. Key with this one for me would be wait for an entry around the flat 112 area for what I would label a somewhat aggressive entry. Risk to reward is good.
However always a contingency in play and that will be the 71 fib retracement which will need to be watched carfeully. A break below this would indicate a drop to the 111 area. For me this 112 area is a key area of interest. I trade 4hr and daily when looking at bigger moves and shorter time frames when looking at a more aggressive trade.
Fundamentally the USD is at an area of contention with rate hike chat and some positive data sets. Keep an eye on the
TNX chart to see an early indication of yield which can lead where the USD is going. Wage growth yet to be commented on in both economies. JPY strength at the moment due some speculation of QQE back off. Key with this one for me would be wait for an entry around the flat 112 area for what I would label a somewhat aggressive entry. Risk to reward is good.However always a contingency in play and that will be the 71 fib retracement which will need to be watched carfeully. A break below this would indicate a drop to the 111 area. For me this 112 area is a key area of interest. I trade 4hr and daily when looking at bigger moves and shorter time frames when looking at a more aggressive trade.
Note
There is also an area of interest for me at 112.34 - this is another band of support and resistance going back a good few weeks on the 4hr timeframe. This would be another trendlie area too when trending from the low of my original area of 112 and going up through that band of support and resistance at 112.34 area. That gives two reasons to look for a entry there but look to your risk reward ratio to help with this.Note
USDJPY currently broken through key area of 112 - JPY strength in this still low volume/liquidity market. Looking for support @ 111.57Note
USDJPY looking at support now at 111.30 region - Yen overstretched? USD news tonight could be a very key point for this pair trade carefully! Some good PPI number could push the USDJPY up with room to move up in its recent move on a pullback.... Bad USA data could extend it but by how much really? Will it move another 120 pips to another support level? I am sitting on my hands on this one as the USDCAD for me holds a bigger interest levelNote
Idea closed - will look for support at the 110 area which it is currently at - key area could offer good support or if broken a further slide down!Trade closed: stop reached
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