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Today's Trading Edge: USD/JPY Bullish Technical Setup

Posted by Edward Moya on Nov 5, 2013 12:35:00 PM

WWM USDJPY Nov 5 2013

Throughout the summer, USDJPY has traded in a tight range that could finally be ending with a significant bullish breakout.  Price action on the 4-hour chart highlights the recent bullish stance established around the 97.00 low at the end of last month. 

With yields on U.S. Treasuries surging today, momentum investors may see this add significant momentum to USDJPY long positions.  Today’s upbeat ISM- Services report also may suggest more positively revised forecasts for the economic outlook in the fourth quarter and a potential taper by the Fed before next March. 

With price action trading above all three key simple moving averages and initially piercing above this week’s bearish trend line, key upside resistance remains at the psychological 99.00 figure. 

The Trade: Go long at current price (as of this writing USDJPY is trading at 98.55), with a stop loss at 98.15 and take profit at 98.95.  The Risk Reward Ratio on this trade is 1:1.

 

Edward Moya

Technical Strategist

WorldWidemarkets Online Trading

 

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