Day trade
/
Sell
Trade view / 13 February 2018 at 7:56 GMT

USDJPY – Sitting on support so selling into rallies

Analyst / PIA First
United Kingdom
Instrument: USDJPY
Price target: 108.05
Market price: 109.15
Background

Japanese Prime Minister Shinzo Abe stated that he had not chosen the next Bank of Japan governor, contrary to reports seen last week, and the denials triggered some yen support and Japanese equities also lost support later in the session which undermined the dollar. USDJPY declined to test 108.00 at the European open with net yen gains on the crosses

Technical
The medium term bias remains bearish. 
Selling pressure from 110.26 resulted in all the initial daily gains being overturned. 
Selling posted in Asia. 
Bespoke support is located at 108.00.
Risk/reward would be poor to call a sell from current levels. 
The trend of lower highs is located at 109.20. 
Bespoke resistance is located at 109.15. 

USDJPY daily chart
USDJPY D
Source: Saxo Bank


Management and risk description

Please note all our day trade ideas are closed at 9pm UK (US market close) if they have not reached target or stop


Parameters

Entry: Intraday - We look to sell at 109.15 

Stop: 109.45

Target: 108.05 and 107.50



— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here
13 February
Anton Bushin Anton Bushin
Hi Ian, would you buy USDCAD from the current levels or you are waiting for a correction to 1.2490 and 1.2470?
13 February
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
1.2510 is support today
13 February
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
GM Anton
13 February
FadelSalem FadelSalem
OMG >>> It's 107.41 here >>> Hope it's point of reflection Or .. . . . . . . God bless me
13 February
FadelSalem FadelSalem
am Talking about U J
13 February
FadelSalem FadelSalem
I knew that 107.30 is a strong historical support , but
13 February
Christian I Christian I
There is a significant short position in the cash market on JPY, thus making sell stops vulnerable through the key support levels. The market tends to move in the direction where most pain is seen, and if CPI disappoints tomorrow, there could be a very nasty move if many of these shorts start to cover.
13 February
Christian I Christian I
.. their positions.
13 February
FadelSalem FadelSalem
In Agenda Nothing to Push USD up today?
13 February
alki alki
Christian I - Let us hope you right. „Nasty” is always relative in FX markets .-)
13 February
Christian I Christian I
I quess it is going to be flow-driven, since there are no major economic releases today (https://www.investing.com/economic-calendar) unless Trump announces that the dollar is going to get stronger and stronger again ;)
Agreed Alki, but a potential risk-off environment and a market "caught" short JPY could easily cause exaggerated moves huh?
13 February
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
just for clarity, a weekly close above 108.00 changing the long-term picture to bullish
13 February
Christian I Christian I
I think that momentum traders will be offering USD/JPY around 107.95 - 108.25 already, but a rally to the high 108.xx looks juicy to start selling more significantly (also in accordance with your view) :)
13 February
Christian I Christian I
.. at

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