Daily Forecast: Buy Opportunity for USDJPY

Hi Friends,

Yesterday, EURUSD and GBPUSD retraced some of the losses and traded higher as US jobless claims rose to 336K, which triggered some USD selling. However, since then we have traded mostly in a small range.

Furthermore, USDJPY spiked higher and broker an important medium term channel as plotted on the 4H chart below. Since, we have breached the channel, I think we should be looking for buy opportunities on any setbacks in USDJPY. Any retest of this channel again, or a spike down to test 98.60/40 should present a chance to enter a long trade.

On the daily chart, RSI has also breached 50, and MACD is also showing nice bullish signs as shown in the chart below. So, we would be looking to buy around 98.60/40 with a bullish candle pattern on the 1H chart. Initial target would be 99.80 and final target can be 100.40 Stop should be tight on 4H close below the channel trend line. We will not be looking to push things as BOJ Governor Kuroda is due to speak in the Jackson Hole later in the week. We should be very careful with such key events as they can turn out be game changer sometimes and move the market either way around.

We have Canadian Inflation data, US New Home sales data and Euro Zone Consumer Confidence measure to be released later in the day. This is the last trading day of the week, so there can be some profit booking from investors. That’s why if the opportunities do not arise, then try not to force one, and stand aside going into the weekend.

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

Have Great weekend friends. Cheers!