Hi Traders,
After comments from Mnuchin and very heavy USD shorts on the market the USD has been very weak. However, after Mr. Trump and Mnuchin (again but this time saying the opposite) confirming that they want a strong USD "reflecting on the US economy" the market has finally stopped selling USD as it was few days ago. Therefore, I believe that we will probably see a correction on USS overall and one of the pairs that I am looking very closely is the $USDJPY. USDJPY is showing many technical reasons of why we should look to try some longs right now:
1- Clear Gartley in place
2- At support area which we also saw the low from April 2017
3- RSI bellow 30 which shows that this market is overextended to the downside
4- ABC waves (equal waves)
As you can see above, we have 4 big reasons why to believe that USDJPY looks good for a correction here.
Levels to watch: 110.20 is massive! a break and Daily close above this level will confirm that it wants bigger correction and we could see 113.00 again.
On the other hand: a Daily close bellow 107.00 will suggest that it wants to go lower to maybe 103.00.
Also keep in mind that on the long-term; USDJPY is inside of a big triangle (check Weekly).
Thank you.
Follow me on:
Twitter: @tradingwithedge
Instagram: @tradingwithhedge
Good luck!
After comments from Mnuchin and very heavy USD shorts on the market the USD has been very weak. However, after Mr. Trump and Mnuchin (again but this time saying the opposite) confirming that they want a strong USD "reflecting on the US economy" the market has finally stopped selling USD as it was few days ago. Therefore, I believe that we will probably see a correction on USS overall and one of the pairs that I am looking very closely is the $USDJPY. USDJPY is showing many technical reasons of why we should look to try some longs right now:
1- Clear Gartley in place
2- At support area which we also saw the low from April 2017
3- RSI bellow 30 which shows that this market is overextended to the downside
4- ABC waves (equal waves)
As you can see above, we have 4 big reasons why to believe that USDJPY looks good for a correction here.
Levels to watch: 110.20 is massive! a break and Daily close above this level will confirm that it wants bigger correction and we could see 113.00 again.
On the other hand: a Daily close bellow 107.00 will suggest that it wants to go lower to maybe 103.00.
Also keep in mind that on the long-term; USDJPY is inside of a big triangle (check Weekly).
Thank you.
Follow me on:
Twitter: @tradingwithedge
Instagram: @tradingwithhedge
Good luck!