New week, new month… and NFP is over.
USDJPY dropped down, but did you noticed the price was held at the Outer lower range (118.60). Wow!
This pair really doesn’t want to break the range!!
And guess what? The current price is back within the Inner Range.
Thus the strategy for this pair remains the same. (You can read my setups that I posted last week, for details)
There are 2 range bounds; Inner (119.20 – 120.30) and Outer (118.60 – 121.30).
For these ranges, you can play
a) Range Bound Play (Sell at the top & Buy at the bottom with the help of Oscillators), or
b) Breakout Play at the boundaries.
Another advise about the Yen pairs is …
if you are interested in GBP (for example), and if the direction of GBPUSD is the same as USDJPY, then you may want to trade GBPJPY.
For example, if GBPUSD is falling and USDJPY is also falling. GBPJPY should fall at much faster speed and range.
Of course, you can substitute GBP with other currency such as EUR or AUD.
In any case, it is Monday after NFP. So let’s see how Asian market reacts, and setup European trading plans.
YJ Baik – Forex.Today @ Tokyo