Good afternoon team,
We are taking a look at the USDJPY. Generally speaking gold and the USDJPY have an inverse correlation. We are expecting gold prices to decline over the coming days for a larger retracement which suggests the USDJPY could move in the opposite direction. Looking at the USDJPY this ticks the boxes from a technical perspective.
USDJPY – 4 Hour Charts
The USDJPY has broken above a negative trend line resistance. The market is now retesting the negative trend line which is acting as support. This is also the 61% FIB retracement, which is a key buying zone. We are now looking to go long on the pair expecting a move towards the 106.60 level and possibly 107.30.
Trade Setup: BUY market execution, current price 105.40, stop loss 104.80 and take profit 106.60 -107.30
Stop loss: 60 pips
Take profit: 120-190 pips