Recent Yen weakness due to a rising 10Y yield and increased expectation for a US hike in March off of comments out of the Fed has seen USDJPY move from the weekly bull entry target of WM2/ 112 up to the target of WM4/ 114. If you bought at 112 then you are trying to drive price up to MM4/ 115.50 though we are currently at the profit zone for the week and price is struggling to make a convincing higher high above 114. While we might see some Yen strength enter due to profit taking bulls are looking to MPP/ 113 for support. Due to price being at the weekly target day traders may have a counter trend opportunity to sell down to MPP/ 113 while swing traders might hold the trade turning their weekly swing trade into a monthly swing trade. We don’t have much US data today though the market will be looking to Yellen tomorrow to see if her rhetoric is inline with her colleagues recent hawkish comments.

USDJPY Daily

Market is flat and price is moving up. Resistance is eyed at MR1 with a monthly bull target of MM4.

USDJPY H4

Price is currently at the profit taking zone. Should bulls take profit this may present an opportunity for a short scalp with 113/ MPP as a target. If you bought at WM2 then you are either taking profit or placing your stop in profit and looking to bulls to re-enter at MPP/ 113 with a target of MM4.

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