Trade Of The Day: USDJPY Selling The Bounce
Trade Of The Day: USDJPY strengthened from 117.20 to 118.05 on Tuesday after market sentiment stabilized. The surge of US and European stock markets yesterday may put further pressure on JPY. BoJ’s governor Kuroda said Japan inflation is improving in a steady manner due to a strengthening domestic labor market. He also underlined that the current easing monetary policy will succeed in the near future though BoJ is only halfway to its two percent inflation target.
Technical: While 120 caps upside corrections expect a grind lower en route to test 116.35 as the next downside objective. Only above 121 eases downside pressure
Trade Idea: I am watching price action in the USDJPY, monitoring a symmetrical corrective move as highlighted in the chart below, looking for an equidistant swing to test 119.50/120.00 the previous spike lows from August and December 2015, where I will be looking for intraday reversal patterns to set shorts risking 100pips to target a test of 2015 August lows towards 116.00.
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