I will be looking to enter a long trade within the purple box which is a key daily zone that has previously acted as a resistance for price and we are now looking for it to act as support.
We have added confluence to this trade via the blue trend line which we can see has previously been well respected and therefore this increases confidence that this will serve as an area of support.
Fundamentally, we have seen the dollar finally start to show some weakness today following the steep decline in US equities caused by the growing market fears of a Corona Virus pandemic. However, it is my view that this will be a short lived decline for the dollar. It is still perceived to be the strongest economy in terms of weathering an economic slowdown should the virus continue to worsen. The Yen on the other hand is facing a weakening economy which will only get worse given its closer exposure to China, therefore this correction is USD/JPY is likely to be short lived and we look to take a long position using tech analysis to find our entry
액티브 트레이드
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As expected the purple zone held and we got a nice bounce in price.
I have taken partial profit at 50 pips and tightened my stop loss to a few pips outside of the purple zone as the impact on the virus is looking likely to weigh on the dollar in the short term