USDJPY potential swing trade opportunity
Macro-Economic Outlook:
The US dollar continues to remain bearish for me over on the daily time frame especially against the euro 0.01% . Fundamentally speaking, the Federal Open Markets Committee is expected to reinforce a cautious, gradual hike. It is highly unlikely that we will see a further rate hike given the current trade tensions faced within NAFTA and China. Informal NAFTA talks will be held for the weeks ahead, but I stay the course that not much headway is expected to be made as history has shown. Furthermore, multiple predictions of tariffs being imposed on China's $260 billion and more of imports will be a heavy hitting influence for retaliation. China has declined further trade talks with the United States as trade tension rises, it could be a sign to let actions speak louder than words.
USDJPY Analysis:
Despite the fact that I forecast a weaker US dollar, it still remains relatively stronger than the yen. Given this uptrend, I have no doubt that this is another potential long entry with a swing trading strategy. However, I do not plan on entering another trade after I took profit of +100 pips last week. This is a potential short term entry nonetheless if you choose to take a shorter term, potentially intra-day position.
The US dollar continues to remain bearish for me over on the daily time frame especially against the euro 0.01% . Fundamentally speaking, the Federal Open Markets Committee is expected to reinforce a cautious, gradual hike. It is highly unlikely that we will see a further rate hike given the current trade tensions faced within NAFTA and China. Informal NAFTA talks will be held for the weeks ahead, but I stay the course that not much headway is expected to be made as history has shown. Furthermore, multiple predictions of tariffs being imposed on China's $260 billion and more of imports will be a heavy hitting influence for retaliation. China has declined further trade talks with the United States as trade tension rises, it could be a sign to let actions speak louder than words.
USDJPY Analysis:
Despite the fact that I forecast a weaker US dollar, it still remains relatively stronger than the yen. Given this uptrend, I have no doubt that this is another potential long entry with a swing trading strategy. However, I do not plan on entering another trade after I took profit of +100 pips last week. This is a potential short term entry nonetheless if you choose to take a shorter term, potentially intra-day position.
Trade active:
Ended up taking a long position:
Comment:
If you took this trade when I outlined that it is a potential, I recommend closing it out just because it has reached the previous highs. I wouldn't try to target any higher than the full candle body of the previous highs. That marks a range where it was traded on an intraday basis, but failed to close higher.