US economic news in focus this week – Forex trading short on USD/JPY [Video]
|Last Thursday we looked at the newly found strength in JPY and a short trade on some of the pairs including USDJPY.
We suggested waiting for a pullback, before going short, and we got it here!
From the technical side, if you see the stochastic oscillator turn up and back like this, such a dramatic change in MACD, and consistent big gaps in the Parabolic SAR, you know you have some serious momentum.
If we zoom out we can see the next key level below at about 146.
If you want to open short positions on other JPY pairs, make sure that price action is not stuck at a key level, like CADJPY, GBPJPY, or NZDJPY.
Unless price action on any of the other pairs breaks lower, then USDJPY might be our best move.
We always suggest checking the corresponding currency and it looks like USD is still weak so a short position on USDJPY might be logical.
We promised to look at USDCAD after last Friday’s employment results but both countries had similarly higher-than-expected results so we had no trade.
Overall, we are seeing general CAD weakness so a long on USDCAD might be a possibility but wait for confirmation first.
CAD is weaker after the fall in crude last week but price action has returned to this key level so let’s keep an eye on WTI.
Almost all the economic news is out of the US this week so watch for volatility and some pullbacks against the trend to give us opportunities to trade WITH the trend.
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