USDJPY - 116 Key Technical Level

FX:USDJPY   U.S. Dollar / Japanese Yen
375 2 9
Greetings Fellow Traders,

This is a pretty picture perfect example of why I prefer to trade what I see on my charts as opposed to what an immediate news release might indicate. It's important to remember that trading is about pairing yourself with what the majority of the interbank market is doing. Without any context the market falling is not a good reason to buy, and the market surging is also not a good reason to buy. Finding key levels that the market is reacting to is far more important when deciding where to enter a trade.

Today I'll be taking a look at USDJPY             Daily Chart - with the surge up you'll notice that USDJPY             seemingly stopped at a former support that was traded for a sell off. We are once again approaching a key technical level at 116.00.

As long as we stay above 116 - A level that has prevented further decline on numerous occasions, I'll be looking for buying opportunities. With the extremely rapid decline this week - you can visibly see the divergence present as we approach 116. It could be possible for a short term buy.

If 116.00 breaks on the daily chart , I will fully be looking at selling opportunities to potentially reach 106.

Be smart with your trades, feel free to follow/like/comment.
Comment: Daily Close below 116
I'm short on this one since 3rd Feb and just added to my position after the daily close below 116 level which confirmed the head and shoulders pattern with objective target of 106. Having said that, please note on the weekly chart there is a gap from October 2014 which is represented by 112.30 level that will be a strong support in my opinion.
Agreed, it was wise to cover shorts here.
+1 Reply
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