Looking to sell USDJPY if it rallies further

USDJPY, 240 min

Earlier today the yen eked out fresh lows against the dollar and euro, among other currencies, in what has been generally lacklustre trade in Asia. A solid set of Chinese data failed to lift spirits in most Asian stock markets, with investors in need of a breather after a week of strong rallies. A major earthquake was reported to have hit Japan’s Kyushu island. It caused damage and very unfortunately deaths but hasn’t caused a tsunami. This morning’s Japanese industrial production numbers for February came in at -5.2% while the previous number was -6.2%. There was no immediate reaction to the number even though the JPY strengthened a little bit later on.

USDJPY has rallied from Monday’s low of 107.63 until the pair corrected lower today. It is now trading relatively near the 109.10 support which coincides with 23.6% Fibonacci level. I’m interested in the levels near the 50% Fibonacci retracement (at 110.72) for short entries as it coincides with 110.65 level that used to be an important support for the pair. The 50% level adds to this levels significance.

Should the pair rally to my sell area between 110.25 and 111.00 I will be looking for sell signals inside the sell area. The target 1 (T1) area is between 109.08 and 109.75 while those looking for a longer term target might choose to exit at target 2 between 104.75 and 105.50. I recommend using strict risk management as per usual. If you don’t know how to manage your trading risks professionally you are welcome join to my free webinars to learn more about it.