Shorting USDJPY - A Fundamental and Technical Case
The day has come - I am shorting USDJPY here at 111.43. Yes I know.. for all you technicians it is not setup yet, however, our MFS SYSTEM is not based only on technical analysis, their our many factors we consider when taking a trade. For the technicians keep in mind we have not been able to make it above the monthly support level at 111.54 and stay, this concerns me. We are starting to turn technically with momentum as well on some of our other technical indicators.
The thing that may concern some traders is with all this political uncertainty this pair has neglected to make any progress. One reason in particular is the rates curve has been steadily increasing as the FED raised its rates. This can change at the blink of an eye as we have many fed speakers lined up this week who may have some suprises to talk about. BOJ has assured us they will continue their bond buying, however, their are rumors that the buying is drying up, and they are ready to raise rates. The evidence points to the fact that JAPAN should be ready to raise their rates and begin to taper.
Without getting to deep technically or fundamentally, I am placing a stops and targets on this trade in the member section and sending these levels out to our members. Keep in mind, that I do not expect this to move at the exact moment I stop writing this article, it could be tomorrow or three days....I may get stopped out ....who knows....The object of the trading game is to focus on the best setups day in and day out until you achieve greatness over time...
Here is the chart as I am shorting usdjpy.
- Posted by fx_Trader
- On June 26, 2017
- 0 Comments