USD/JPY: Should see some volatility today
It’s not something we say very often, that day-traders should have a look at USD/JPY, but it’s shaping up as being the most interesting of the main pairs today. The USD was heavily sold pre-FOMC and fell again immediately after the event, but perhaps the market is now short enough and we could see some aggressive profit taking?
- If USD/Asia starts to rally today then that will drag USD/JPY along with it.
- More rumours of possible intervention overnight and if the FinMin hits the newswires early with the usual verbal intervention than we could see USD/JPY start to rise.
- First line of offers now reported at 79.00
- Very solid technical resistance around 79.25/30 with the 200-day MA and a 61.8% Fibo (https://www.tradingview.com/x/jrCjCSOI/)
- Intraday support should be solid near previous hourly highs at 78.45.
I’m looking to enter with a small long position around 78.55 and see what happens after that.