The USDJPY pair has been patiently trading in a shallow angled channel particularly without any whipsaws caused by Greece vs EU recent developments. Safe heaven flows have been moved to USD and Yen making the pair additionaly stable while trade balance ( the difference in value between imported and exported goods and services ) in July came mostly as expected only slightly missing the forecast ( -41.9B actual VS -42.4 forecast), while Japan’s country economy continues to recover at a slightly moderate pace.
Watching H4 timeframe we can spot a shallow angled down channel and the price reacting to Historical sellers. As I have suggested on yesterday webinar with Admiral Markets, pullbacks towards 122.90 could give us short opportunities which is currently happening. 122.80-90 is still POC as we could see DPP and Trend line confluence just below 123.20 Strong Resistance marked by a retail gap (which has been closed) and Historical vs Now moment sellers.
USDJPY is going for 122.25 then 121.75 and only the break out and H4 close below 121.70 will target 120.90.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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