Happy New Year.
I had a long Christmas-NewYear vacation.
Now I am back in position, and monitor the market from Asia.
Yen has been super strong for a while, and I don’t see any reason to change the bias.
Perhaps we will need to see another Kuroda Bazooka, to alter the Yen condition.
USDJPY pair serves as the basis for all Yen cross pairs. Thus my first post in 2016 should start with USDJPY.
Here is the Weekly chart. The price has been in the range bound for several months now. But in a bigger picture, the current price is only Fib 38.2% level, and Stochastic is reaching down to 25%.
Thus in a few months, I hope the price will turn up.
However, looking at Daily chart, it only looks very Bearish. No way to build the Long setup, even though the current price is at the Support.
The price is will below 21EMA on all timeframes – Weekly, Daily, H4 and H1.
So the price may go down to the next support zone, which is 116.00 level.
Now, for a daily bread, I would suggest the following Short trade, from Fib 38.2-61.8%, as shown in Hourly chart below.
118.80 is the nice Role-Reversal resistance. So I will monitor this level as the sell zone.
The target should be DS2 – 118.26.
YJ Baik – Forex.Today @ Tokyo