Shanghai index dropped 2.53% (as of 1AM EST), and Nikkei is flat.

USDJPY pair ended with red candle yesterday.  The statement from BOJ was no surprise.

So far, during the Asian hours, a little down movement observed with Yen-Cross pairs.

Looking at the Daily chart of USDJPY (below), the prices are controlled by 21 EMA and blocked also by Monthly Central Pivot.



Even on Ichimoku Daily chart (below), we can see this chart continues to show the biggest sell sign, and the candles are blocked by Kijun Line (Blue line).


Thus in the big picture, I would like to look for Sell Opportunity.


The first sell zone should be 120.20-120.30 area, which is the resistance and the pivot cluster of DPP, WPP.   A little problem with this setup is… I don’t like the fact that the price has formed the double bottom (not making lower low) at 119.86.  But if you are aggressive, I think it is worth the shot from 120.20-30 area.



To be more conservative, I think we should wait to see the break of 119.86 and sell from the pullback.   We can continue to do so at the next support (119.60).



As long as the price is under 21 EMA on the daily chart, I would like to stay Bear.


Hope this setup helps you build your own.


YJ Baik – Forex.Today @ Tokyo


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