The rally in USD/JPY offers a selling opportunity
|The Yen witnessed a lower open this week on reports that the Japanese government had approached Bank of Japan Deputy Governor Masayoshi Amamiya about replacing current Governor, Kuroda. There was a mild reversal in the move after government spokesman said the story was not based on fact.
The subsequent upside move in USDJPY has bought a trading opportunity, if the rally can be sustained into our resistance zone.
I have bespoke resistance at 133.72 and 133.79. A bearish BAT formation will be completed at 133.93-134.22. It should be noted that we have a Gap open at 131.18. Gaps tend to get filled.
USD/JPY 8-hour
With the next medium-term support level not seen until 124.29, this offer a great risk/reward sell setup
USD/JPY monthly
Possible short setup:
Selling USDJPY at 133.72 (bespoke resistance).
Stop at 134.82 (above the swing high).
Target 124.30 (medium-term support).
Risk/reward ratio 8.56R.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.