Good afternoon Forex Kings,
With all global indices on key support zones, and the majority resting on the 200 day moving average, we could now see some recovery after two days of steep declines.
The USDJPY is creating an interesting set up: This trade set up is based solely on technical analysis.
USDJPY – Weekly Charts
Previously the market broke a long term negative trend. This morning there has been a retest of the negative trend line and a support zone.
USDJPY – Daily Charts
The USDJPY is known for its V shape recoveries after steep declines. The 110.00 handle appears to be the next key support zone.
Be sure that the FED and other central banks will be doing everything to prevent the markets from going down further.
Trade Set up: BUY USDJPY – Stop loss 109.70 and take profit left open.
Stop loss: 80 PIPS