Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (120.858)
Some points to consider:
- Dollar recovers with buyers eyeing the rising trend line.
- Waiting for more clarity on price action before entering a trade.
- Trade Strategy: Stand Aside
The USD/JPY Forex market continues to correct higher. The Dollar has found support above the key handle at ¥116. Traders are now eyeing the rising trend line, visible on the below USD/JPY daily MT 4 chart. This trend line has guided price action for most of this year until a break below that endangered this year’s bullish run for the Dollar earlier last week.
Technical Analysis
Let’s begin today’s daily USD/JPY technical analysis. There is near term resistance, a former support level, lining up at 121.75. A daily close above this technical resistance level challenges the next technical resistance lining up at 123.10. The alternative USD/JPY technical analysis, should the Dollar reverse course, thus pushing this Forex market lower, notes technical support lining up at 120.68. A daily close below this technical support challenges the next technical support lining up at 119.60.
Trade Strategy
Let’s look at today’s daily USD/JPY trade strategy. There is a dominant trend for the US Dollar in this Forex market and that is bullish. The latest break lower was merely a correction. Keeping this in mind, I am still unsure whether the recent bounce higher over the last several trading sessions is a true return to the USD/JPY up move. This could be a retracement with the Dollar setting itself up for some more losses. With no clarity, I am hesitant to enter a long or short USD trade at this time. For today, I will opt to stand aside and monitor my charts for a more opportune trade opportunity to present itself. I am flat, for now, in the USD/JPY Forex market.
