Let's talk about the advantages of shorting the USD/JPY right now.
Economic Analysis Advantages
1. USD/JPY has only rebounded because of the positive job numbers from NFP this bullish wave is likely to be short-lived.
2. Fed Powell is speaking about interest rates before the day comes for him to speak a lot of people will abandon the USD before the announcement to avoid getting caught in the volatile market. Fewer people holding the USD means a weaker currency which makes it easier for JPY to push this pair down.
3. The Yens Price index just started a bullish hammer candle which will further support the yens strength in this market.
4. The Yen has no major news coming out this week which means its not subjected to large market volatility that the USD will be exposed to this week with multiple announcements.
Technical Analysis Advantages
1. If we look left we can clearly see there's a massive downtrend indicating this market is bear. Again the short boost from USD is from NFP job numbers which will be short lived. I believe the long term trend will not be broken this week.
2. We are inside major resistance on the 4-hour chart if you look left you can see this level has been tested multiple times I circled the level getting tested with "orange circles"
Disadvantages
1. The president of the united states is subject to saying critical things on whim lucky for us he has no major addresses this week.
Entry: Inside of the blue zone
Stop Loss: Edge of the red zone
Profit: Edge of the green zone
I avoided given exact numbers because I know many traders have different entry reasons. But of my account, I am risking 7% on this idea. JPY STRENGTH is the plan.
This isn't financial advice but don't be on the wrong side of the trade, and if you are, USE proper risk management to trade another day.
Economic Analysis Advantages
1. USD/JPY has only rebounded because of the positive job numbers from NFP this bullish wave is likely to be short-lived.
2. Fed Powell is speaking about interest rates before the day comes for him to speak a lot of people will abandon the USD before the announcement to avoid getting caught in the volatile market. Fewer people holding the USD means a weaker currency which makes it easier for JPY to push this pair down.
3. The Yens Price index just started a bullish hammer candle which will further support the yens strength in this market.
4. The Yen has no major news coming out this week which means its not subjected to large market volatility that the USD will be exposed to this week with multiple announcements.
Technical Analysis Advantages
1. If we look left we can clearly see there's a massive downtrend indicating this market is bear. Again the short boost from USD is from NFP job numbers which will be short lived. I believe the long term trend will not be broken this week.
2. We are inside major resistance on the 4-hour chart if you look left you can see this level has been tested multiple times I circled the level getting tested with "orange circles"
Disadvantages
1. The president of the united states is subject to saying critical things on whim lucky for us he has no major addresses this week.
Entry: Inside of the blue zone
Stop Loss: Edge of the red zone
Profit: Edge of the green zone
I avoided given exact numbers because I know many traders have different entry reasons. But of my account, I am risking 7% on this idea. JPY STRENGTH is the plan.
This isn't financial advice but don't be on the wrong side of the trade, and if you are, USE proper risk management to trade another day.
Trade active:
Already in profit 50 movements (5pips). Do not be on the wrong side. You may get a second chance for entry.
Trade active:
Already in profit 100 movements (10 pips). This trade has the potential to bounce when the U.S. market opens but should not pass our stop loss at 108.18. I've already taken some profits off the table,
Trade active:
Wow it shot backup during the day just like we expected this could be goos for a re-entry. Looks like we get a second chance.
Trade active:
Rentry @108.635
This is the remaining strength from the USD positive NFP numbers that will be short lived.
I talked about the possibility of a spike upward from the remaining strength in my previous post.
I talked about the possibility of a spike upward from the remaining strength in my previous post.
Trade active:
Our target was reached within the first 8 hours this trade, what we are doing now is continuing the idea that JPY is going to rebound against the USD. 3% Risk on the sell.
Trade closed: target reached:
This trade was already successful with the first 3 openings. Our continuation trade was not successful. Profit of 4% all profit matters. Rather win than lose.