Short USDJPY yen going up up on a wednesday… why? we see daily price action depicted above the high of the day wicks to a trend channel formed after japan increased rates and has been in a downtrend since. the current price is also rejecting off the 20ema on the daily which is a key entry point this also is a second entry and therefore a high probability trade, on the counter side the only reason for still potentially longing is there being a bullish trend channel that hasnt fully played out however it isnt fully confirmed with many touches so this could be a trap looks like a good trade to take targetting the bottom of the current downtrend channel or potentially holding to see how long this downtrend can continue however you would need to factor in swap charges to see if this is worth the risk in the long term. for the stop loss few points above todays current high would be sufficent proof that the trade has not played out in our favour lets see the Yen get stronger!
Quote of the day: “People say nothing is impossible, but I do nothing every day.” – Jim Cummings
Movie of the day: Trainspotting (1996)
Song of the day: Common People – Pulp