USDJPY getting ready to break bearish
USDJPY bottomed out at 105.53 on May 3. We then rallied to 111.45 by the end of May. Since then, we've sold off and it has ben pretty orderly. I have been advising clients to be short since June 1 and did a piece here at TradingFloor.com on June 2 suggesting we would go back to 105.53.
So is it a buy now that we're at support? I don't think so. In fact I'm short and staying short, even thinking of adding as we should get quite a reaction if/when 105.53 and 105.19 give way, as there next area of support is in the low 103s.
Risk-off sentiment around the traps (I'm not entirely convinced this is only about Brexit, but there you go...) adds weight to this view.
The only caveat to this trade is possible intervention as we're at critical levels...
Entry: sell at market (currently 105.66) and a rally to 106.00.
Stop: above 106.55.
Targets: 103.10 and 101.05.
Time horizon: one to two weeks.
Create your own charts with SaxoTraderGO click here to learn more