FXWW News/Technical Analysis/Trade Ideas/USD/JPY

USD/JPY: Risk-reward favours shorts at current levels near 99.50

  • Possible topping formation in EUR/JPY (see chart).
  • AUD/JPY looks to be re-starting its downtrend and a break below 89.00 would confirm this (see chart).
  • Pretty obvious resistance level now at 101.50 in USD/JPY.

As I’ve said many times recently, I think USD/JPY is likely to stop out a lot of people on both sides of the market. I still think the short-term market is overly long and we could get another nasty squeeze lower towards 92.50 before the bulls re-emerge. For the medium-term player, a 200 pip stop against a 700 pip profit target makes excellent sense and I’m happy to be short anywhere near 99.50/100.00.

  1. Hi Sean, may I ask what your short target is? I’m looking for 95.30 but in this volatile market I wouldn’t be surprised if the 50% Fibonacci level would be revisited (just under 90.00)

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