Yesterday, we saw a dramatic sell-off with all Yen pairs.
Are we seeing it again today? I don’t know. That’s a million dollar question. 🙂
Even looking at the charts, we see different possibilities depending on the timeframe and depending on your bias.
If you take the fibonacci of the entire drop, then you would like to sell from the current (Fib 50%) level, right?
On the other hand, if you take the fibonacci of the latest rise, then you would like to buy from Fib31.8-61.8% level.
From the fact that Nikkei index is stable today (18,300, +143 @ 10PM EST), I would rather buy this pair.
Another reason why I am looking for Long opportunity is simply by H4 Stochastic moving up (though it is still under 25%).
The buy zone should be, as usual, Fib38.2-61.8% as shown below.
The conservative target should 120.50, and the aggressive target will be 121.00. (Rising speed is typically slower than dropping speed. So please do not expect 150 pips up in one day)
I would recommend to use M15 chart for the reversal confirmation, not M5 today as there may be lots of fakes and uncertainty.
YJ Baik – Forex.Today @ Tokyo