Fundamentals:- This trade is more driven by the fundamental aspect more than the technical picture. Things are heating up a little on the possibilities of a trade war between the USA and China which is causing weakness in the USD. I am looking at the Japanese Yen because it is what we call a safe haven currency. This means that traders will run to the JPY in times of global turmoil and uncertainty which generally causes it to strengthen.
Technicals:- We have had a breakout to the upside yesterday which was quickly reversed on the latest trade war news and is currently hanging around a 50% retracement of that drop. Looking to enter on market.
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Trade closed: stop reached
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Fears of a trade war faded today causing the USD to strengthen against the JPY and the trade was stopped out