Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (¥118.478)
- Resistance Levels: 119.05, 120.30, 121.80
- Support Levels: 117.80, 116.30, 114.40
The almighty buck, the U.S. Dollar, continues to move higher versus the Japanese Yen. The USD/JPY is now above 118 and continuing to climb. Please refer to the above daily MT 4 chart. With a break and daily close above near term resistance at 119.05, the doors will open for 120 and higher. If this happens we will challenge 120.30 next. Should we see a reversal then we need to close back below 117.80 to indicate a short term top in place. If this happens we would then challenge 116.30.
Today’s trading strategy is an eye opener. It is so enticing to start placing long trades at this time. Especially from a technical analysis perspective. Here is when having knowledge of macroeconomic events comes into play. I am opting to stand aside because of a couple of reasons. First reason is the current climb higher is too closely correlated with the MSCI Stock Index. This index is the leading indicator global market trends. Second reason to stand aside I am waiting for the USD/JPY to make a sharp move lower when Federal Reserve rate hike bets begin to sink in and we see risk aversion trades.
As always, trading strategies are for educational purposes and do not constitute trading advice. Please do your own analysis to support mine.
