Forex Marketz Daily Forex News – Fully Markets Update
USD/JPY (119.552)
Three points to consider:
- Yen gains back 5 months of losses over four days.
- Three year bullish trend line in trouble
- Trade Strategy: Stand Aside
The USD/JPY Forex market has seen its largest single day loss since May 2010. This caused the Dollar to crash through a yearlong trend line towards the year to date near the ¥116 pivot. This move has erased 5 moths of gains recorded by the Dollar. 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 daily technical analysis. A very interesting setup is occurring as this recent move lower puts the Dollar within striking distance of a rising trend line that has been guiding this Forex market higher for three years. There is a strong support level lining up at ¥114. This level will decide price action for the months to come. We will have to see if it holds or not.
Trade Strategy
Now let’s look at today’s trade strategy. There is no actionable trade set up in the USD/JPY Forex market. Price action is seesawing erratically as I note violent swings on an intraday basis. Right now, the overall bias favors a bullish USD move as long as multi-year support levels remain unbroken. Right now I am hesitant to pick a bottom or even assume the USD/JPY will challenge the key ¥114 level. For now, I will remain on the sidelines monitoring my charts for a better trade opportunity. For today, I am flat in the USD/JPY Forex market.
