I am sorry I couldn’t post any setups/analysis yesterday. I will make it up this week.
USDJPY dropped yesterday, and it dived into the Ichimoku Cloud. (as seen below)
I will stay Bull with this currency pair, until the price dropped down from the clouds. I am hoping Daily Tenkan Line and the bottom of the clouds will serve as Support.
H4 Stochastic cycle seems in the up cycle. However, Hourly Stochastic has started the down cycle, and the price is riding 21 EMA on Hourly still. So on Hourly chart, it is still in a strong down trend.
Thus the current price level (120.20) is actually a Support. However, due to the fact that the price is riding 21EMA, it is hard to imagine the price will go up from 120.20. Thus my BUY ZONEs are
- 120.00-120.10 (Ichimoku Support)
- 119.70 (Next Level of Support)
However, due to the event schedule (FOMC & BOJ announcement) for the rest of the week, I will not recommend to trade USDJPY. I would rather trade EURJPY or GBPJPY. But it’s good to know the movement of USDJPY when trading those YEN pairs, right?
I will post other trade setups for those pairs later.
YJ Baik – Forex.Today @ Tokyo