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.
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.



















