Daily sentiment overstretched for USDJPY
For the fourth week in a row, signals have continued to point higher, investors buying the market in May from close to the 200 week average for sentiment to rally towards ¥111.70, a 38% recovery to the entire 2016 losses.
While yesterday’s 1½ Big Fig gain is positive and confirming the view, a six Big Fig bounce since May’s more than 1½ year low has left daily sentiment overstretched near the 38% Fibonacci. Dips remain buying opportunities though, for a test of 38%.
Management and risk description
Buy mainly on dip and raise stop to entry if the first target is met.
Entry: market and ¥110.90.
Stop: ¥110.68, Monday's Marabuzo line.
Target: ¥111.70, the 38% Fibonacci and ¥111.91, the 5 week top.
Time horizon: The next couple of days.
Charts: CQG Create your own charts with SaxoTrader; click here to learn more.
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— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more