USDJPY has been dropping dramatically since last week.

Nikkei has also dropped 4.15% (-807 Yen) as of 1:30AM (EST).

We wonder how low will USDJPY drop?   London will open in a few hours.   Will the price go up, or down?

Looking at the H4 chat below, we can say the price has been in the range bound between 120.50 – 125.50, and currently at the bottom of this range.

We have to monitor if the price shows some kind of reversal price actions.

2015-08-24_14-11-41-UJ1

I was Bear with this pair last week, due to the Bearish Divergence on the Daily Stochastic.  But now, after the huge drop, I am Bull on a long term.   Thus I would like to look for the Long opportunity, and the current Support level can be a sweet spot.

Looking at M15 chart, however, the chart shows no sign to go up, riding 21EMA – VERY BEARISH.  Therefore it may take a long time, before the price forms the bottom.

 

 

2015-08-24_14-14-13-UJ2

 

Even on M5 chart (below), it didn’t show any reversal sign yet.  But the price is riding 55EMA.   So I have to watch if it is forming Higher low or Double bottom, followed by Higher High.   In theory, I could buy this pair from the next Higher Low.   But hey, this down movement is very strong.  I cannot buy this pair only based on M5 chart.  I will also check M15 chart (or even H1 chart) looking for Higher High, to be ready to buy.

2015-08-24_14-15-26-UJ3

Please remember, the price may drop further.

All I would like to tell you is that I am Long-Term Bull with this pair, and eventually it should stop dropping.    So as a currency trader, I will keep monitoring when that happens.

 

YJ Baik – Forex.Today @ Tokyo

 

 

 

 

 

 

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