Short term
Trade view / 26 September 2016 at 7:41 GMT

USDJPY signals pointing lower

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

A near five-big figure rally since August’s low at 99.54 has attracted sellers back to the market in September from close to 104.45, a 62% correction to the July-August gains as well as to Ichimoku cloud cover. This cloud cover is following the market lower and is providing the resistance to sell rallies, highlighted by Wednesday's failed spike higher. 

A bounce into last week's close was expected with prices trading near the psychological 100.00 level, but it should be corrective and further gains should be temporary and used as a selling opportunity.

Management and risk description

Sell just modestly on the open and lower stop to entry if the first target is met.


Entry: sell at market and then at 101.72, Wednesday's opening trade.

Stop: 102.78, last week's top.

Target: 100.10, last week's low and 99.54, August's low trade.

Time horizon: this week.

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Source: CQG 

USDJPY Daily - cloud cover
Source: CQG  

USDJPY Quarterly - lower highs
Source: CQG 
— Edited by Michael McKenna

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Non-independent investment research disclaimer applies. Read more
Steve Lucas Steve Lucas
There is no sign that the sell-off is ending, but ahead of 100.00 the Fig and last week's low at 100.10 we are reducing some exposure to shorts and lowering the stop to the entry point. At this stage though we will still look to sell the rally at 101.72.
Pandorra Pandorra
Good call, Steve. Excellently done!
Steve Lucas Steve Lucas
tks Pandorra


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