Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (120.078)
Some points to consider:
- Price action is trading around the pivot at ¥119. Favors a bearish outlook.
- Risk to reward analysis argues against taking a short US Dollar trade now.
- Trade Strategy: Stand aside
The USD/JPY market looks to move lower once again after this Forex market has consolidated after hitting a two week low. The Dollar looks to move lower again, a move that occurred after it broke the rising trend line from 2015 late last August. The Dollar then corrected higher to test the former support not resistance at the trend line, only to fail. Please refer to the below USD/JPY daily MT 4 chart for today’s technical analysis.
Technical Analysis
Let’s discuss today’s USD/JPY technical analysis. There is near term support lining up at 118.20. A daily close below this level challenging the next technical support at 117.14. The alternative USD/JPY daily technical analysis, should the Dollar gain momentum, thus supporting this Forex market notes former support, now resistance at 119.32. This is the September 1 closing price. A daily close above this level challenges the technical resistance at 120.70 (September 3 high).
Trade Strategy
There is no actionable trade to take right now. The 20 day average trading range (ATR) is larger than the current trade range. From a risk to reward analysis that rules out a short USD trade as price action is wedged between a narrow support and resistance corridor. This assumes a stop loss, based on my current strategy, on a daily close basis, was to activate. Taking this into account, I will opt to stand aside for a better trade to come along. For today, I am flat in the USD/JPY Forex market.
