After a solid move up we are now in a potential reversal zone for this pair! Seen some bearish price action on the Daily! Our 0.618 falls perfectly in our highlighted area and maybe a break below close below 103.42 could give us a short opportunity with a brilliant risk reward profile of 5:1! (That target can get adjusted to suit you but looking at the bigger picture a retest of previous lows 99.12's could be on) Happy trading everyone!
Comments
Corporal.Forex
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lately, I was focusing on USD/JPY price action based on risk appetite, as bond yields went down. for example, selling USD/JPY as investors pulled money out of bonds.
but lower oil prices seem to relieve JPY's 'deteriorating trade balance'.
'The best forecaster on the yen says he hasn’t recommended selling the Japanese currency in a few months as lower oil prices provide solace for Japan’s deteriorating trade balance.'
Nice trade! Good job. Did you trade it on real account?
SmartTradingFX
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Thank you! I did trade this on my real account and it was one of my best Risk Reward profiles for the year :)
SmartTradingFX
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Thank you Olu for your comment! Thats correct just keeping a close eye to what price action we are getting in this zone! Going to have a look at your idea now! Happy trading!
Olu
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I saw this same setup too and have put up an idea as well. We need the jpy to strengthen (fundamentally difficult) and we need the cad to weaken (doable because of crude oil). I am seriously watching this one. The risk is small as well. Above 104.10 and we are wrong
but lower oil prices seem to relieve JPY's 'deteriorating trade balance'.
'The best forecaster on the yen says he hasn’t recommended selling the Japanese currency in a few months as lower oil prices provide solace for Japan’s deteriorating trade balance.'
bloomberg.com//news/2015-01-12/yen-s-top-forecaster-halts-sell-call-as-oil-cuts-japan-deficit.html