Watch for temporary USDJPY counter-trend bounce to roll on
With bearish signals confirmed in each of the previous two days, yesterday’s signals switched to bullish. These too have been confirmed with a ¾ Big Fig rally.
Although this is positive and a small sequence of lower daily highs has been ended, prices on the week are unchanged and with this following last week’s unchanged close intraday signals lack a strong trend.
There is scope for this correction to continue on Friday though as signals remain positive.
Management and risk description
Allow room to buy the dip and raise stop to entry if the first target is met.
Entry: buy at market and at 101.82, just above today's low in Asia.
Stop: ¥101.51, just below yesterday's Marabuzo line.
Target: ¥102.83, the August 2 high and ¥103.28, a 38% recovery to July's losses.
Time horizon: Today only.
Charts: CQG. Create your own charts with SaxoTrader; click here to learn more.
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— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more