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.
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.
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.
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