Trade view /
18 July 2016 at 9:36 GMT
Dip buying has been in focus for USDJPY, and this sequence for trading looks likely to continue.
In last week's USDJPY report
, we looked at dip buying close to strong support at 101.67-100.57 and the positive outlook on the daily chart suggested 106.20 as a good intraday target.
We achieved this level (106.31 high) and have now seen a correction lower.
Intraday – We are now assessed as being in a corrective channel formation that has an eventual bias to break higher. Bespoke support is seen at 104.56, and with heavy intraday Ichimoku Cloud support, this is seen as the prime long entry. The channel base is at 104.36. With a stop below the 38.2% pullback level of 103.89, and a target at 110.70, this makes a solid risk/reward trade this week.
Management and risk description
set long (1 unit) at 104.60.
— Edited by D. Deacon
Non-independent investment research disclaimer applies. Read more