Temporary bounces look likely for USDJPY
This week’s signals have pointed to staying short and selling the rally. This is so far proving correct as initial gains of almost 1½ Big Figs have been mostly given up.
Although this is negative, bears are likely to remain cautious with prices testing May’s more than 1½ year low at ¥105.53 and bounces are likely. These should be temporary though, and signals for today point to staying short and selling into any strength.
Management and risk description
Allow room to sell rally and lower stop to entry if the first target is met.
Entry: market and ¥106.98, today's open in Asia.
Stop: ¥107.39, yesterday's high.
Target: ¥106.00 and ¥105.53, this year's base.
Time horizon: Today only.
Charts: CQG. Create your own charts with SaxoTrader; click here to learn more.
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more