USDJPY: Steep Uptrend Nearing 2008 High Above 110.00
The daily candle chart below shows the price history of the United States Dollar (USD) versus the Japanese Yen (JPY) over the medium term. This currency pair is known as USDJPY, and is trading around 109.55 around time of publication today.
With USDJPY hitting a new multi-year high today near 109.73, the 2008 year-end high of 110.69 is still within reach as long as the pair doesn't have a significant correction before reaching that price (The 2008 high was technically on January 1st 2008 near 112.16 but above we reference the high reached in the latter half of 2008, as a target).
Last time this pair was reviewed in the Ideas You Can Trade series in September, the steep uptrend had solidified and then moved very bullishly towards current levels. 108.00 had been described as a target - which has since been reached - and 111.00 was also noted as likely level that can come within range over the short term.
If USDJPY can sustain its very steep run, then possibly resistance on the 2008 high of 110.69 could emerge, whereas a reversal either from current levels or near that high could cause a serious pullback. However if the 2008 target of 110.69 can be overcome, including the high of 112.16 -then the bullish uptrend should be further reiterated.
Below are example of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 109.85 with a Limit to take profit @ 110.28 and a stop-loss @ 109.54 Risk/Reward Summary: Limit risk = +43 pips profit / (-31) Stop-loss risk = Gain to Loss ratio =1.38
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 108.99 with a Limit to take profit @ 108.44 and a stop-loss @ 109.29 Risk/Reward Summary: Limit risk = +55 pips profit / (-30) Stop-loss risk = Gain to Loss Ratio = 1.83
Medium term daily candle chart:
Long term MONTHLY candle chart: