USDJPY | Perspective for the new week/year

Updated

Asian currencies witnessed a positive start to the new year as investors bet on slower interest rate hikes by the U.S. Federal Reserve and a weaker dollar. Despite a dull start to the year, It is worth noting that the first NFP for the year is a high-impact macroeconomic event that has a tendency to bring some liquidity into the market and we are likely going to see the reflection of this anticipation on the chart in price action. In this video, we looked at the chart from a technical standpoint and deduced the importance of the 131.000 level which will be a determinant of price movement in the nearest future.

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So, since the beginning of the week/year price has remained within the demand zone (131.000 area) identified in the video where it has been caught within a tight channel between 131.000 (resistance) and 130.650 (support). At this point, we shall remain patient for a signal which shall come either in the form of a breakout or breakdown of the channel to incite the direction of price action for the week. Remember, that we have two macroeconomic events coming up tomorrow (FOMC minute & ISM manufacturing PMI) and the anticipation of these events is likely to bring liquidity into the market.

Good evening

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Price action broke down the channel support at 130.650 level and moved over 100 pips profit before coming back to the entry zone in the last hour. The breakdown of the channel could be seen as the confirmation of a trend continuation pattern in the form of a bearish rectangle pattern; So we shall continue to look out for selling pressure below the 130.650 level for selling opportunities. Please, note that we shall not ignore a possible buying opportunity at a breakout/retest of 131.000.

Good morning

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Buy pressure resumes as we look forward to a breakout/retest of the 131.000 level for buying opportunities while we keep the option of selling below the 130.650 open.

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With the recent pivot low finding a new high, the tendency of a breakout of the 131.000 level increases.

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Planning to sell below the 130.650 - breakdown/retest of the new trendline as sellers continue to reject the 131.000 level

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Secure sell position

Good morning

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Just as discussed during our live session this morning - the buy position triggered as price action breakout/retest of the 131.000 level. Secure buy positions.
You might want to watch the replay of our live session this morning on my youtub channel for insights on how to manage this trade.

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150pips running in profit, secure the buy position as we all anticipate the FOMC to release the minutes of the December policy meeting 30 minutes from now; there is a high chance that the US Dollar will continue to rise where a possible retest of the trendline on the chart might incite another wave of bullish momentum.

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Just as projected in the last update; price action retest the 132.000 level/trendline to trigger the second position. Secure the buy positions as we look forward to adding more positions at the breakout/retest of the 132.720 level.

Good morning

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QUICK UPDATE

Participants look forward to the macroeconomic event today (ADP Employment Change) and we are beginning to witness the reflection of the anticipation on the charts. You might want to watch the replay of our live session this morning on my youtub channel for insights on how to manage this trade during the NY session

Note

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Positive data for the US Dollar - ADP employment change recorded 235K as against the expectation of 150k.

In this regard, we have the third position triggered at the breakout of the 132.720 level. Secure all buy positions as we look forward to another opportunity to add more positions.

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A new structure identified at 133.400

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Price edges close to TP target; Secure all buy positions as the fourth position got triggered at the retest of the projected 133.400 zone. We shall continue to monitor price action in anticipation of the NFP today... Update coming up soon

Good morning

Trade closed: target reached

Over 850pips in profit as price action hit TP target on all four positions. Now, we want to see how price action reacts to the 134.500 to decide if we are going to be buying or selling the USDJPY... An update coming up soon.

Congratulations to everyone who was part of this journey!

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Since price action hit the TP target at the 134.500 zone, a simple set-up has been identified in the 15 minutes timeframe as participants look forward to the macroeconomic event today (Nonfarm Payrolls) - coming up in 50 minutes and we are beginning to witness the reflection of this anticipation on the charts. You might want to watch the replay of our live session this morning on my youtub channel for insights on how to manage this trade during the NY session

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Secure current sell position as price action breaks down the 134.250 level (support level of the last channel identified on the 15 min timeframe). Price is currently at the 133.400 level and a breakdown/retest of this level should welcome additional positions.

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Secure sell position as buying pressure resumes at the 133.400 level

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As buying pressure continues after the retest of 133.400 following the NFP release, a breakout/retest of the new structure at 133.900 might be a good opportunity to buy.

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Secure sell position as price action breakdown 133.400 level to trigger second position

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Secure all sell positions as we look forward to adding another position at the breakdown/retest of the 132.000 level

Note

Congrats to everyone who has been part of this profitable journey... I am closing for the week and hoping to see you here next week.

A beautiful weekend to you!

darcsherry

Trade smart. Trade consciously

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