2 ways to trade USDJPY

٢ ديسمبر ٢٠١٩

Yen is considered as a safe haven and many a times , when there are uncertainty in the market, many will scramble to buy YEN, i.e. short USDJPY.

Now, we are in a risk no environment thus benefitting the equities and bonds market. Thus, as seen on chart, USDJPY is more likely to proceed in an upward trajectory towards the gap at 110.9 to 111.

Buy when price breaks and closed above 109.59.

Sell when price breaks down from the blue bullish diagonal trend line. However, this short may be a short term correction before price moves higher, so adjust your profit targets and SL accordingly. The long short is not here yet imo.

Trade cautiously.

٣ ديسمبر ٢٠١٩

ملاحظة

Still within the blue bullish trend line, nothing changes materially. You can buy if you want to but note profit taking or resistance is at 109.588 so manage your risk accordingly.

٣ ديسمبر ٢٠١٩

ملاحظة

Now we have the price action breaking down from the bullish trend line, let's wait for the retracement before deciding to sell. It may be a fake breakdown, beware.

٦ ديسمبر ٢٠١٩

ملاحظة

Selling commence with the last red candle.

١٣ ديسمبر ٢٠١٩

ملاحظة

Selling was short lived , at best a break even or a minor loss. Now we are at cross-road once more with the price level hitting 109.588 with a doji candle pattern. That means buyers and sellers are indecisive which way to go.

Action to take - none, wait for next week to see how it plays out before deciding.