Day trade
Trade view / 27 May 2016 at 7:16 GMT

USDJPY consolidates but bias skewed to upside

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

USD Index – Continued the move to the downside but the selloff stalled close to the daily Ichimoku Cloud base. With the Elliott wave five-wave bullish formation now considered to be complete, the bias remains negative. However, I would expect some volatility this morning with immediate dips likely to find buyers close to 95.00. Our preferred trade for the index is to sell into rallies.

USDJPY - One currency pair that looks likely to push against this negative USD bias is USDJPY. We have said for some time that the medium-term focus remains bearish, with the target area being 101.67-100.57. This remains true.

Long-term focus for USDJPY is bearish
Source: Saxo Bank

We have seen mixed results for the last seven days, with the pair holding broadly within our bespoke support and resistance levels of 109.44 and 110.68. 

USDJPY bespoke support and resistance
Source: Saxo Bank

This has resulted in a large consolidating triangle on the intraday chart. This formation has a bias to break higher. This is not my favourite formation to trade because what now looks to be a bullish pattern, with a break of support, can turn into a channel. Only the fact that the base line is close to bespoke support is attractive. I would suggest a half-size trade as against the longer-term view.

USDJPY consolidating triangle
Source: Saxo Bank 

Management and risk description


Entry: Buy at 109.46

Stop: 109.16

Target: 110.65

Time horizon: today to trigger (or cancel), 2-3 sessions for the target

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more

Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
missed trigger by 1 pip
feri feri


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