USD/JPY SHORT IDEA FOR THE WEEK OF 13-05-19 TO 17-05-2019
Price closed below the 200MA which signals us to look for a bearish move for USDJPY.
We have had a very strong move to the downside where price has formed support at 109.479 at the weekly close.
From there price tried to retrace back to the 78.6% Fibonacci Zone of 110.105 but got rejected and closed below the key physiological level of 110.00.
Stay clear from this trade at the moment, however keep this trade on the watchlist, due to geopolitical tension between US and China, there can be very high volatility for this pair.
At a technical standpoint, we are in a strong downtrend, wait for a pullback to the 61.80% Fibonacci Level and wait for the 4hr close to see if price got rejected from that level, after the 4hr candle close, look for a high RR sell order from market price, and place stops 5 pips above the previous candle's swing high.
Profit targets should be at the key area of support which us 108.689 (127.00% Fibonacci Extension Zone)
We have had a very strong move to the downside where price has formed support at 109.479 at the weekly close.
From there price tried to retrace back to the 78.6% Fibonacci Zone of 110.105 but got rejected and closed below the key physiological level of 110.00.
Stay clear from this trade at the moment, however keep this trade on the watchlist, due to geopolitical tension between US and China, there can be very high volatility for this pair.
At a technical standpoint, we are in a strong downtrend, wait for a pullback to the 61.80% Fibonacci Level and wait for the 4hr close to see if price got rejected from that level, after the 4hr candle close, look for a high RR sell order from market price, and place stops 5 pips above the previous candle's swing high.
Profit targets should be at the key area of support which us 108.689 (127.00% Fibonacci Extension Zone)