The rally in USD/JPY offers a selling opportunity

Ian Coleman FXStreet

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.

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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