DowntownForex

USD/JPY Trade Idea

By Forex District – The pair rose in Asia as higher stocks dampened demand for the Japanese Yen. Despite the Dollar weakening against other currencies, it was able to gain versus the Yen. After barely any moves on Monday within 98.88 and 98.22, the pair has finally seen higher volatility. Wall Street performance could be the main driver to the pair’s next move.

Looking at the 4hour chart, USD/JPY has been mixed for the last couple of weeks but has regained a slight upward bias, however, the pair may be in a trading range for awhile between 90.00 and 100.00. We posted a buy recommendation yesterday at 97.52, where T1 was met with ease, the balance was sent to breakeven. In the near term, the bias is neutral awaiting clear signs to emerge. The next level of support is the 97.67 where a break of such would target subsequent levels at 96.90 and 96.00.

Resistance lies at 98.12, followed by 98.88 and 99.58.

Trading levels in play:

USD/JPY Limit Buy 96.02

Limit Buy @ 96.02 Targets: T1 96.22 – T2 97.12 Risk: 95.49
* After 15 pips profit move stop to entry, take profit at will. Good Till Ny Close. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

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