The
DXY
has been falling since June 21 from 97.84 to its current 96.00. During this period, the Dollar-Yen pair has continued to rally from its bottom of 108.82 to its previous week close of 113.904.
We are able to view that the pair is currently trading upwards in a channel, and one way which we can profit from this is to go long when prices hit channel lows, and go short at channel highs, though I would personally recommend to go long only since it is currently trending upwards and thus makes no sense to go against the trend.
However, we expect the divergence to be coming to and end, given that there is a significant resistance level at 115.00 and 116.00 on the Daily charts.
We would stay out of the pair at the moment and wait for potential shorting opportunities at the key resistance levels of 115.00 and 115.30.
This analysis can also be found at www.houtiantan.com
DXY
has been falling since June 21 from 97.84 to its current 96.00. During this period, the Dollar-Yen pair has continued to rally from its bottom of 108.82 to its previous week close of 113.904. We are able to view that the pair is currently trading upwards in a channel, and one way which we can profit from this is to go long when prices hit channel lows, and go short at channel highs, though I would personally recommend to go long only since it is currently trending upwards and thus makes no sense to go against the trend.
However, we expect the divergence to be coming to and end, given that there is a significant resistance level at 115.00 and 116.00 on the Daily charts.
We would stay out of the pair at the moment and wait for potential shorting opportunities at the key resistance levels of 115.00 and 115.30.
This analysis can also be found at www.houtiantan.com
Trade active:
We have finally shorted the pair after news of Donald Trump's son exchanging emails with Russia pushed the pair downwards. We have a TP at 113.60 for this trade.