Japan’s GDP of April-June 2015 was -1.6% (Annual).    Yes, it was a little better than expected.  But still negative is negative!

I think Abe cabinet or BOJ will need the additional stimulation package sooner or later, in which case I can sell off JPY.

But until then, all we can do is to read the technicals and trade accordingly.

Looking at the Daily chart, I still see the bearish divergence on Stochastic is a big deal.

2015-08-17_13-13-45-UJ1

Thus my bias for this pair is… Short term Short, Long term Long.    At least I would like to see the price drops down to 55 EMA (Blue line) level.

Let me show you my Short trade plan.

Below is Hourly chart.

2015-08-17_13-11-12-UJ2

Currently the price is at the resistance level, which is also Fibonacci 38.2% level from the recent sell-off.   The price was also rejected by WPP 4-candles ago.   Stochastic also tells me the possibility to drop from the current level.

 

For the entry… please look at the M15 chart below.

2015-08-17_13-16-06-UJ3

Currently the price is at the Resistance zone, which contains both WPP and DPP.   Even on this M15 chart, I see Bearish divergence on Stochastic and MACD.

I will wait for Lower-Low, followed by Lower-High before I go Short.

I would like to aim the target as 123.50 (Daily 55EMA level).

 

YJ Baik – Forex.Today @ Tokyo

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