Good Monday!
this is a good analysis on how JPY could be a good idea to trade this week after the run up that all currencies did against it.
Fundamentals, Japan has had some good news on their books, we will see how the liquidity responses to this .
1) As anticipated earlier, the USD/JPY pair followed the direction of the Nikkei 225 and opened with a significant gap lower today's trading session.
2) The pair retraced at the 61.8% Fib level which aligns with a major horizontal resistance level.
3) Futures positioning supports a stronger JPY vs USD
4) USD Index weakened today in the direction of US 2y, 5y,...
1) Potential double top forming on daily chart, near 6.00 round-number
2) US/TR 2-year yield differentials forming slight divergence
3) RSI forms a bearish divergence
4) Positioning and data support a stronger USD - possible headwind for the setup
5) Break above 6.00 invalidates the idea
After the brakethrough of the resistence at 1.058 yesterday my trade for this week will start at exact this level. Goals? Let's see maybe a move up to the 1.07 is a possible TP for the comming days or next week.
What are you thinking about this idea?
