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

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
29 August
bancodemon bancodemon
Will trade this based on your opinion. Thanks
01 September
Steve Lucas Steve Lucas
reduce exposure to a small balance and raise the stop to today's 103 06 low.


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

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