Short term
Trade view / 28 August 2016 at 22:44 GMT

USDJPY: End to lower weekly highs signals bullish reversal

partner and technical analyst / 3 c analysis
United Kingdom
Instrument: USDJPY
Price target:
Market price:

A sequence of four down weeks in USDJPY ended over the past five days. Buying interest emerged at marginally higher levels than the previous week, both below 100.00. Although the bulk of the trading was consolidation around 100.000 without clear signals for sentiment, Friday’s powerful gains took USDJPY comfortably through the 13-day moving average for the first time in a month – regaining the previous week's entire net fall. A sequence of lower weekly highs has been ended and although a reaction to Friday's late strong upside is likely, signals now look for setbacks to find fresh demand. So with these factors in the background, our signals for this week are pointing higher.

Management and risk description

Allow roon to buy the dips and raise stop to entry if the first target is met.


Entry: Buy at market and then 101.18, Friday's Marabuzo line.

Stop: 100.06, Friday's low.

Target: 103.52, a 50% recovery of the July-August losses and 104.13, the past five-week Marabuzo line.

Time horizon: Until 12pm on Friday UK time.

USDJPY weekly chart
USDJPYweekly - lower highs ended
 Daily chart USDJPY
USDJPY Daily - buyers below 100.00
USDJPY quarterly chart

 All charts Saxo Bank

— Edited by Susan McDonald

Non-independent investment research disclaimer applies. Read more
bancodemon bancodemon
Will trade this based on your opinion. Thanks
Steve Lucas Steve Lucas
reduce exposure to a small balance and raise the stop to today's 103 06 low.


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