USDJPY Analysis: New Week Perspective and Follow-Up Details

The U.S. Dollar was steady amidst the debt ceiling impasse while the Japanese Yen recorded a significant drop making it among the worst-performing Asian currencies in the previous week. Softer-than-expected Tokyo inflation data on Friday spurred more expectations that the Bank of Japan will hold off on tightening policy this year, although the reading was still well above the BOJ’s 2% annual target. Is the current market structure mature for profit-taking activities despite the stronger-than-expected consumer spending in April which is generally seen as an excuse for the Federal Reserve to hike interest rates again in June? In this video, our technical dissection identified a simple setup that can aid us in making informed trading decisions ahead of the new week.


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Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.

Trade active:

Thought the week started on a bullish note breaking out of the key level identified in the video at the 140.750 level but it appears this momentum isn't lasting long as price action not only drops back below the key level but went ahead to breakdown the support line of the range at the 140.530 to incite a "potential" bearish signal hence we shall continue to hold on to a bearish bias as long as price remains below both the key level and the 140.530 zone.

Good Morning

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Fallout from our live session this morning; sell position running in profit, secure position while we look out for more opportunities

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UPDATE

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Fallout from our live session this morning

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Sell position triggered

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Selling pressure continues, secure all sell position

Good MOrning

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Secure all sell positions as we look out for more opportunities

Trade closed manually:

After price action takes out the last sell position with a small profit. Price is currently trading at a significant confluence along the 139.700 zone where it has a confluence with the descending trendline supporting the bearish momentum since the beginning of this week. So, a breakout/retest of this confluence has a tendency for buying opportunity while a drop below the 139.700 with cointinued selling pressure will welcome selling opportunities. We continue to monitor price action ahead of the ADP employment change and Manufacturing PMI data.

Happy new month!

Trade active:

18pips running in profit; secure buy position

Trade closed manually:

Price action takes out the buy position as price action drops below 139.700 and descending channel to be back at seller's territory

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Two positions running in profit; time to secure all sell positions

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All sell positions are secured. However, it is observed that as soon as rice tested the 138.600 zone, buying pressure has been negating the seller's attempt to break down this zone. So we need to be patient here as the price still remains below the descending trendline that has been supporting the bearish momentum since the beginning of the week with selling opportunities still existing if a breakdown/retest of the 138.700 level. Unless a breakout of the trendline at the 139.120 level, we cant consider buying at this juncture.

Good Morning

Trade active:

buy position triggered

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Three positions running in profit of approximately 140 pips, time to secure all positions

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With a cumulative profit of 175 pips, it's time to secure all buy positions as the price action steadily approaches our TP target.

Concluding for the week, I wish you a restful night and a fantastic weekend ahead.