Day trade
Trade view / 14 July 2016 at 7:59 GMT

USDJPY breaking higher in continued bull run

Analyst / PIA First
United Kingdom
Instrument: USDJPY
Price target:
Market price:

Dip buying is in focus for USDJPY and this sequence for trading looks likely to continue. 

Monthly – Dip buying is close to strong support at 101.67-100.57. This is the 50% pullback from 75.30-125.85 and previous swing low. There is a possible pincer bottom if we close around current levels. 

A strong rejection of price here could form a right shoulder of a bullish Head-and-Shoulders pattern and project the pair aggressively higher over the long term, though it's far too early to tell.

Source: Saxo Bank  

Weekly – The chart highlights strong buying after completing the five-wave bearish Elliott Wave formation. The main question here is whether the move up is corrective or impulsive. The strength and speed of the rally would suggest an impulsive move and the start of a new bull trend. 

Source: Saxo Bank

Daily – Probably the most important factor in this positive outlook is the daily chart. A 261.8% extension will take the pair to previous resistance at 110.77. We are close to the 161.8% extension at 106.20 and an area that has been pivotal, so it's looking like a good intraday target. There is nothing to suggest that this bull run is coming to an end. 

Source: Saxo Bank

Management and risk description


Entry: buying close to 105.00.

Stop: 104.50.

Target: intraday 106.15. Medium term 110.70.

Time horizon: intraday to medium term.

— Edited by D. Deacon

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail