Forex Marketz Daily Forex News – Fully Markets Update
The USD/JPY Forex pair is attempting to mount a recovery. The US Dollar is now probing above the ¥123 after falling to a two month low versus its Japanese Yen counterpart.
Technical Analysis
Looking at today’s technical analysis, near term resistance is lining up at 123.05. This is just above the falling trend line. A daily close above this level will challenge the next technical resistance level lining up at 124.07. The alternative USD/JPY technical analysis, sees support at the trend line at 123.03 to ¥123. A daily close below the trend line will challenge the technical support lining up at 121.90 then 120.70.
Trade Strategy
Taking a look at today’s trade strategy. The technical analysis shows price action too close to a technical resistance level to warrant a long USD trade. This makes timing poor from a risk to reward perspective. There are no clear cut bearish reversal signals as well. This means taking a short USD trade is a bit premature. From an event risk standpoint, the poor retail sales numbers could force the US Fed to postpone normalizing monetary policy and raising rates. This could cause USD volatility. I will opt to stand aside for now and monitor my charts for a more opportune trade to present itself.