POSITION TYPE: SHORT
STOP LOSS: 109.500
TAKE PROFIT: 105.00
SHALL THERE BE ANY UPDATES I WILL PROVIDE THEM IN THE THREAD BELOW. BENEATH YOU CAN FIND THE ANALYSIS BEHIND THIS TRADE SETUP
As seen from the main chart, the weekly TF shows the price respected by a long term held triangle (black lines). The blue line represents another concrete which was broken as the weekly candle closed comfortably outside the . As of now the next support that lies is present at 105.00 level where the main triangle's lower is present. So we can expect the price to make its way to that level in the coming weeks.
On the fundamental perspective, the prospect of US interest rate cut has already sent the greenback tumbling against all major currencies. USDJPY is the most sensitive pairs of them all. Inevitably the FED would cut the interest this year and it might be two times potentially! although this event has not been priced in at 100% in the markets, the coming weeks may seem to reveal further USD weakness as the prospect of eventual rate cut gets priced in!
Additionally, the trade war is not helping the greenback either against the yen, as any negative news or developments seems to favor traders rushing for safehaven yen. As said the coming weeks are crucial and will show clear picture as to where the price headed but at the moment the technical and fundamental picture are both in our favor.