Chart shows USDJPY set for further downside
We have seen a modest recovery for this pair in recent weeks, but we regarded this as merely retracement and expected to see sellers return. It broke a short-term uptrend line on the chart yesterday and broke support at 109.50-60. This area is being retested this morning and is finding sellers at first blush (evidenced by a Shooting Star pattern on the 30-minute chart). We would suggest joining these sellers.
Management and risk description
Stop should be moved to entry on a break below yesterday's 109.10 low.
Entry: Sell below 109.60.
Stop: Above 110.05 initially.
Targets: 107.50 then 105.60, the latter being the May 3 low.
Time horizon: 1-2 weeks.
USDJPY daily candlestick chart showing recovery followed by renewed selling
— Edited by John Acher
Non-independent investment research disclaimer applies. Read more