If USDJPY goes to 109.5 it might just give a great short opportunity for a +300 pips trade.
- It's the end of the month, so i'm expecting to have some dollar strength today (last day) and maybe tomorrow.
- It's good to remind ourselves that despite the fact that this month had around 1000 pip volatility range, this pair remains in a bearish trend and the monthly candle is telling just that.
- Had a huge run up and failed to go above February high (~112.2).
- 109.5 is a great zone of resistance and it's also the 0.786 fib extension from the last move.
- 200 weekly MA is also around 109.5 and it served as resistance sometimes in recent past.
- 4hr RSI is showing clear signs of this being just a relief bounce rather than a trend change rally.
Given all this, i'll be shorting this pair if it gets to 109.5 and if breaks down before that i'll look for a new possible short opportunity in the next bounce.
Cheers
- It's the end of the month, so i'm expecting to have some dollar strength today (last day) and maybe tomorrow.
- It's good to remind ourselves that despite the fact that this month had around 1000 pip volatility range, this pair remains in a bearish trend and the monthly candle is telling just that.
- Had a huge run up and failed to go above February high (~112.2).
- 109.5 is a great zone of resistance and it's also the 0.786 fib extension from the last move.
- 200 weekly MA is also around 109.5 and it served as resistance sometimes in recent past.
- 4hr RSI is showing clear signs of this being just a relief bounce rather than a trend change rally.
Given all this, i'll be shorting this pair if it gets to 109.5 and if breaks down before that i'll look for a new possible short opportunity in the next bounce.
Cheers