Technical outlook on USD/JPY
- Thread starter JSSPMK
- Start date
If I had to choose I'd choose that the U/J will continue to drop and the move up over the last several from about 105.00 is corrective and not a reversal of larger overall trend. Either way one can trade the daily bounce points with small stops if one has a precision method of catching bounces. I would have prefered selling it from about 108.50 for a bounce down with direction of larger trend. All the best.
After reviewing the weekly candle patterns with empahsis on Elliot Wave analysis I still favour the sell concept mentioned earlier however do note that Stochastics indicate oversold. If I were to trade the U/J I'd want to see an opportunity for a bounce off 105.00 again, double bottom or thereabouts. The weekly for me doens't give enough precision for entry however does help give a sense as to how long a Swing trend might be in some cases. All the best.
For what it's worth, I personally like anything that brings attention to the U/J because I like trading the JPY crosses especially the G/J and, as you may know, the JPY often leads movement for those pairs during Asian session. I'll try and watch the JPY more closely over the next week or so and get the mind better wrapped around what it's probably doing. FYI I believe in a group approach to analysing things as it can cut down on human error provided participants have a proven system of analysis. My own schedule still contains too many distractions and find I'm often still a bit rushed on conclusions. Trying to slow down and focus more as winning trades are become the general rule rather than exception... taken 3 yrs and with a bit more focus trading should be rich from now. All the best.