Short term
Trade view / 18 July 2016 at 9:36 GMT

UPDATE: Catch the next wave higher in USDJPY at 104.60

Analyst / PIA First
United Kingdom

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. 

USDJPY chart
 Source: Saxo Bank

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. 

 Source: Saxo Bank

Management and risk description


Entry: set long (1 unit) at 104.60.

Stop: 103.50.

Target: 110.70.

Time horizon: One week.

— Edited by D. Deacon

Non-independent investment research disclaimer applies. Read more
18 July
brian1983 brian1983
tat is if usdjpy can come down below 105 for me to long.... still waiting for dip. hope it allows me to board train
18 July
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
good luck Brian
18 July
brian1983 brian1983
haha. thanks


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