USDJPY – Did the market overreact to the weaker NFP data?
Yes, I do think it was an overreaction. Looking at recent price action we can see how bullish the pair was. This was a solid long trade that got halted at 140.00. After a few days of consolidation, price broke out and a climb to 144.00 was easy. Consolidation followed again and my expectation was that we would soon get to 148.00 (see my posts of 17 June and 01 July). But then came the NFP data and this pair plunged really hard.
My bullish bias however has not yet changed, I will not take a short. I expect the buyers will step in either at the intermediate support in the 141.20 area or the big one at 140. Patience is always key, waiting for bullish evidence important. My overall target remains in the 150's.
Nothing is 100% in trading, so as always, use sound money and risk management and stay patient in all your trades. If you like my content, please give it a “thumbs up” and follow me to get even more.
What do you think about this trade idea? Please comment and share your thoughts!!
My bullish bias however has not yet changed, I will not take a short. I expect the buyers will step in either at the intermediate support in the 141.20 area or the big one at 140. Patience is always key, waiting for bullish evidence important. My overall target remains in the 150's.
Nothing is 100% in trading, so as always, use sound money and risk management and stay patient in all your trades. If you like my content, please give it a “thumbs up” and follow me to get even more.
What do you think about this trade idea? Please comment and share your thoughts!!
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I hope some people who read this analysis made money from this massive dump. Obviously I did not as I had decided against taking a short :)