USDJPY – BUY – 19th May 2020

USDJPY – BUY – 19th May 2020 (Closed)

Good morning Forex Kings,

Markets have turned risk on over night. AUD, NZD, CAD & EUR all rallied higher against the USD.

The DXY and JPY faced significant downside throughout the evening.

The EUR could be one to watch this week as Merkel offered a break through deal to shelf the EU from the corona virus fallout. The German leader proposed a $546 billion fund for economic recovery.

As markets begin to reopen crude oil continues its run higher, global equities also enjoyed a positive start to the week.

Today we are looking at the USDJPY as it has broken a key trend.

USDJPY – Weekly charts

On the weekly charts there is a bullish engulfing candle stick pattern. This means a continuation of a trend.

USDJPY – 4 Hour Charts

There has been a breakout of a pennant formation followed by a re-test.

We can now look to buy the pair with a fairly tight stop loss.

Trade setup: BUY Market execution, current price 107.32, stop loss 107.02 and take profit 108.02.

Stop loss: 30 pips

Take profit: 70 pips

Keep in mind the market needs to break 107.74 resistance so we will see how it reacts around that area.

 

Trade Setup
BUY - Market Execution

Entry
107.32

Take Profit
108.02

Stop Loss
107.02