Good morning Forex Kings,
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The USDJPY is an interesting one as the JPY has not been acting as a safe haven like is usually does, this is due to the strength of the USD over the past two weeks.
However, with the US Congress in the verge of announcing their $2.5 trillion dollar stimulus package we could see a devaluation of the USD over the coming days.
We are going to look to enter this position either from a higher level, or on a break of the trend line.
USDJPY – Technical Analysis
USDJPY – 4 Hour Charts
Currently there is a BEARISH divergence on the RSI signalling a change in momentum. 112.20 appears to be a key resistance level on the charts which could provide a good entry for a short position.
However, the market may now reach the 112.20 handle, therefore we will be positioned for both a break out, and an entry at the 112.20 level.
Trade setup 1: SELL LIMIT – Entry price 112.00 with a stop loss set at 112.60 and take profit at 110.00.
Stop loss: 60 PIPS
Take Profit: 200 PIPS
Trade set up 2: SELL STOP – Entry price at 110.50 with a stop loss set at 111.40 and take profit at 109.00.
Stop loss: 90 PIPS
Take profit: 150 PIPS
If you are able to watch the charts, you can manually watch the break out of the trend line. If you see a break of the trend you can enter on your own. Lets get those pips!