Yen cross pairs have been dropping recently, and we wonder when it might stop dropping, so that we can start buying these pairs.
USDJPY dropped over 130 pips, GBPJPY dropped over 400 pips and EURJPY also dropped over 400 pips during the last 5 business days.
To analyze the extreme buttom, let’s look at Weekly Ichimoku charts. We can assume the Clouds can be Supports & Registances. Thus I suppose the EXTREME buttom for USDJPY is 116.50 now. Notice the top of the clouds will be higher next week, and week after. For example, the top of the clouds next week will be 117.30, and the week after will be 117.70.
Similarly, the EXTREME bottom of GBPJPY will be 179.50 for now, and it will be higher next week, as seen below.
On the contrast, EURJPY has no support, as the candles are already under the clouds. Only thing I can say about this pair is… the EXTREME TOP is 135.00.
Most likely I am going to sell Yen cross pairs today. But it is good to know there will be the bottom underneath for USDJPY/GBPJPY, and no bottom for EURJPY!
Hope this info helps you build your own trade plans.
YJ Baik – Forex.Today @ Tokyo