Good morning Forex Kings,
Corona virus update: 15,000 confirmed cases yesterday with 242 new deaths, today there is an additional 4800 cases with an additional 116 deaths.
China has developed a new testing method which wasn’t available previously, this means total cases could rise dramatically over the weekend.
Currently there is an interesting set up on the USDJPY. Although the stock market continues to rally to record highs, the USDJPY has held its price below a negative trend line.
USDJPY – Daily Charts
The 110.00 level is a key resistance zone which has been used previously. As you can see the pair are also trading at a key level on the negative trend line, this trend has been going since 2015. Of course all trends are broken at some stage, however as the saying goes, ‘the trend is your friend’.
USDJPY – 4 Hour Charts
Trade Setup 1: SELL USDJPY – SELL LIMIT – 109.90, stop loss 110.45, take profit targets are 109.20 and possibly 108.50.
We are going to leave the take profit open to run for the time being.
Stop loss: 55 PIPS
Take Profit: 70 PIPS
If we get a break lower without activating we will let you know!