USD/JPY rallied last week after tagging 103.55. This was an area to expect buyers on a dip as noted in a previous post:
USD/JPY - Buy at 103.55
Although USD/JPY has not cleared above the high of the week at 104.27, it looks ready for bullish continuation as price pushed above the cluster of the 200-, 100-, and 50-hour simple moving averages as well as a falling trendline from the week.
With the bullish outlook revived, we can consider initiating or adding a position on a near-term dip. Looking at the 1H chart, if price falls back to 103.80-90 area, USD/JPY would be testing a some support factors, such as the SMAs and a near-term rising trendline.
The upside remains toward 105.44. The target therefore could be 105.35.
If price falls below 103.50, we are likely in a consolidation and we might have to shelve the bullish outlook for the short-term. So, let's say we put a stop-loss level at 103.40.
With an entry at 103.85, the stop-loss risk is 45 pips (103.85-103.40). The potential reward would be 150 pips (105.35-103.85). That makes it a 150:45 or 3.3:1.
USD/JPY 1H chart
USD/JPY - Buy at 103.55
Although USD/JPY has not cleared above the high of the week at 104.27, it looks ready for bullish continuation as price pushed above the cluster of the 200-, 100-, and 50-hour simple moving averages as well as a falling trendline from the week.
With the bullish outlook revived, we can consider initiating or adding a position on a near-term dip. Looking at the 1H chart, if price falls back to 103.80-90 area, USD/JPY would be testing a some support factors, such as the SMAs and a near-term rising trendline.
The upside remains toward 105.44. The target therefore could be 105.35.
If price falls below 103.50, we are likely in a consolidation and we might have to shelve the bullish outlook for the short-term. So, let's say we put a stop-loss level at 103.40.
With an entry at 103.85, the stop-loss risk is 45 pips (103.85-103.40). The potential reward would be 150 pips (105.35-103.85). That makes it a 150:45 or 3.3:1.
USD/JPY 1H chart
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.