USDJPY – Enroute To Test Pivotal Resistance
Due to the hawkish speech from Yellen, USDJPY broke through its 120-121.6 range to reach a two-month high of 121.72. With the Bank of Japan scheduled to release its policy meeting minutes, greater reluctance to further expand the easing program may heighten the appeal of the Yen.
Break of 121.30 sets bulls sights on range highs at 121.85 next, ahead of the equality objective at 123.50, an intraday failure at 120.50 would suggest return to range.
- For those who follow our Forex Report trades you will know we are holding longs from 120.50 as of last week, targeting a topside break from the range to test the equality AB=CD objective at 123.50 which coincides with a retest of the underside of the ascending trend line and the horizontal resistance as highlighted int he chart below.
- As we test 123.50 we will monitor intraday reversal patterns to reverse our long positions and venture short leaning against 123.60/80 to retest the range break out at 121.50 where we will reassess price patterns
For updates on this trade set up and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick