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USDJPY along with Korean missile test and US on Holidays

Market Analysis

USDJPY,  Daily

Last Thursday I took a trade on three different Yen crosses. Hence I wrote: “ The yen is coming under pressure across-the-board, with the 0% yielding yen converting back to the funding currency of choice in the forex market as global stock markets rally. Hence by noticing this weakness and by anticipating that the U.S. Fed’s moderately-paced tightening program, I decided to take some intraday and Daily Long positions in several yen crosses, having in mind that tightening program will keep these pairs underpinned. Long intraday positions were taken in CADJPY, GBPJPY and USDJPY. The GBPJPY in the 4 hour chart extends its upper Bollinger band and makes also higher upper Fractals. Entry was taken at 146.03 with targets at 147.00 and 147.60. Support was set at 144.30.” – This position still holds since pair manage to reach up to 146.92 high, and still looks bullish with some intraday trend corrections.

Additionally, “The CADJPY posted new high for the last 3 months in the daily chart. In the 4-hour chart Parabolic SAR remains positive. Entry was taken at 86.36 with Daily targets at 87.00 and 88.30. Support was set at 83.50. Intraday Target was also taken at 86.80 and Support at 85.00. Lastly, for USDJPY an intraday entry was taken at 112.41 with hourly target at 112.90. Support was set at 111.20.”

Both trades rose towards our Targets. The USDJPY hit target 1 within the same day, gaining +49 pips. Meanwhile CADJPY reached Intraday target on June 30 and Daily Target 1 (i.e. 87.00) just yesterday, for net gain of +64 pips. Hence, we have a total net gain of +113 pips. Meanwhile our last Daily Target still holds and support moves at 85.00.

Today , the Yen strengthened temporarily as North Korea test fired a missile. USDJPY tipped back under 113.00, in the morning, putting in some space from yesterday’s seven-week high at 113.47.

However, a new trade was taken for USDJPY, despite the fact that dipped today at 112.73, since we have seen an hourly consolidation of the pair. Hence a Long position was taken by considering that in the Daily timeframe, pair looks to have space for further strength, with Parabolic SAR and MACD being still positive. Important is the fact that despite today’s small weakness, the pair still moves above trendline plotted since December high. The upper Bollinger band pattern extending further up.

Hence entry was taken at 113.09, with Daily Target is at 114.30, which is close the last high value (May 10) and the 23.6 Fibonacci level. Support was set at the confluence od 50-Day MA and 38.2 Fibonacci level, i.e. 111.50.

 

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Andria Pichidi

Market Analyst

HotForex

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