Flows and Orders/Trade Ideas/USD/JPY

USD/JPY: Another topside test favoured today

The USD generally looks bullish across the board and unless some of the big Yen crosses like EUR/JPY suddenly turn bearish, we can expect the recent up-trend in USD/JPY to continue. Nevertheless there will also be some joy some top-pickers I feel, with China still expected to be defending a 97/104 dnt structure. My sell order was triggered overnight but I’ve already booked profits on that (to partially pay for my bad cable trade 🙁 ) and I’m hoping for a quick intraday spike towards 103.80 to reinstate my shorts.

  1. Good morning Sean,

    Newbie for forex trade, why do USD/JPY always sees intraday high pre-Asia session?

    Is this a normal trading pattern?

  2. Hi Jason, haven’t really noticed that before but in general, liquidity between NY close and Tokyo open is usually pretty bad and hence the bigger than usual moves

  3. In general Muneer, USD/JPY will lead the JPY crosses but not always. It could be the case that GBP/JPY breaks lower, USD/JPY stays stable and GBP/USD falls. But again, in general, the USD/JPY will lead any major cross moves

  4. Looks like a double-top of sorts has played out on the USD/JPY hourly chart. This should be good for a dip to 101.75 ish, but perhaps we’ll see a bigger retrace back down towards 100 and perhaps 98-99. I’ve got the bottom of a channel on the daily chart coming in down there, but I do imagine there will be plenty of buyers ahead of 100 as well.

  5. Very much agree, I don’t see the medium/long term USD/JPY bull trend abating, but short term I have been waiting for a pullback and I think we’re seeing the start of it now.

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