Trade idea: Joining USDJPY uptrend toward the 114.00 resistance
|The USDJPY currency pair is pushing to new highs today and it appears that there is nothing that can stop it now from reaching the 114.00 resistance zone. After breaking the key monthly resistance last week, it appears that now USDJPY is ready to continue to move higher this week too.
The Dollar is broadly strong today also - against all of the major currencies after Fed's chairman Powell testimony before Senate was taken as hawkish about markets. He expressed optimism about the economy and about the Fed reaching its dual mandate - that is full employment and inflation around 2%.
With the technical breakouts on the charts and the positive fundamental backdrop, the Dollar is likely to continue to march higher for a while longer before it stops.
USDJPY is currently trading around 112.85 and attaining 114.00 this week seems very likely. To look for entries, we can switch to intraday timeframes - like the 1-hour chart. Traders can enter around the current levels of 112.85 with a relatively small stop below the 112.50 psychological level and a target to 114.00. Trailing the stop higher once some profit is achieved would also be appropriate in this situation of a strongly trending market.
USDJPY Current Trading Positions
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