Daily Analysis: Observing USDJPY for a possible sell opportunity

USDJPY is one of those pairs, which provides wonderful technical entries for the traders. We were looking to short the pair, and the pair did move lower. Now, the pair is consolidating in a range, and I think the pair has some more room to the downside. The pair may duplicate the last down move, and trade lower in the coming session, as shown in the 4 hour chart below.

Looking at the 15-minute chart of USDJPY, the pair has formed a triangle, as can be seen in the chart below. A push below this triangle may trigger some more losses for the pair. The RSI on the 15-minute chart is also on a verge of breaking the 50 level, which is a good sign. So, if the pair moves lower, breaks this triangle and closes below it, then we can enter into a sell trade. We can aim at least 30/40 pips with this trade setup if validated.

Initial target should be around the 103.90 level, and final target could be around the 103.60 level. Stop should be placed above the 104.60 level.

Reviewing yesterday’s events and trades
Yesterday, the US inflation data was released, which was mostly in line with the expectations. Furthermore, the initial jobless claims registered another decline from 328K to 326K, and Philadelphia Fed Manufacturing index jumped from 6.4 to 9.4. The US dollar is trading broadly higher after the data release. The EURUSD traded lower below the 1.3610 level, and the GBPUSD is currently trading below the 1.6340 level. Some of our trade setups like EURCHF worked perfectly as expected.

Fundamental Outlook for the day
Today, the US housing and Building permits data will be released. Other than this, US industrial production data and Michigan consumer sentiment will also be released. I do think that there will be any major moves later during the day. However, we need to be very careful as today is Friday, and any profit taking move may trigger an unexpected move. So, stay away from entering into an unplanned trade setup, and wait for the Monday to analyze the price action.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURCHF, USDCAD, NZDUSD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast

Have a Great weekend friends. Happy trading!

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