Today I’m going to show you exactly how I’m trading USDJPY this month.
We’ll discuss one area that could produce a more than 400-pip move, and some key levels and targets to watch.
I’ll also share the latest on the JPY Index to help you navigate USDJPY and other yen pairs.
Watch the video below and scroll down for the annotated charts and analysis.
I wrote about USDJPY and more specifically the yen just a few days ago.
I’m focused on this pair because the technicals are outstanding.
And to be honest, it’s one of a few pairs that is moving in a somewhat predictable manner right now.
If you saw the video from earlier this week, you know that the JPY Index is sitting at range lows.
Because of that, I was looking for yen strength this week.
In other words, I’m anticipating a pullback from the yen pairs like USDJPY.
However, a couple of things need to happen first.
The first thing that needs to occur for USDJPY to pull back is a sustained break below 146.50 on the higher time frames.
Notice how we have an ascending trend line here and also a key horizontal pivot.
The second thing that needs to happen to look for shorts here is a sustained break above 6,960 from the JPY Index.
A daily close above that mark from the JPY would give me significantly more confidence in shorting a pair like USDJPY.
To be clear, I’m not convinced that USDJPY is the best way to express a strong yen bias.
That’s because the US dollar has outperformed of late, so shorting this pair may present more challenges than others like EURJPY and GBPJPY.
But as mentioned above, I like the technicals here, and that’s reason enough for me to pay attention.
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