1/12/2020 USDJPY Another Forex Trading Snack!
I know! It’s been lagging the moves of the S&P stock index when it’s been a great risk on or risk off dance partner. Where has the partnership gone?
This 109.70 resistance zone has held price from advancing when stocks have been screaming higher throughout the Christmas rally. I don’t believe in straight line moves move on for ever! In fact stock moves of late is in my view a straight line move, and way over done! However stocks or Forex pairs don’t always move off my wishes, feelings, or even my personal picks for trade entries. Ok! They never consult my opinions before moving where they do, the market just does what it does. The market is never wrong. Well I’m wrong a lot! Just being honest here in a joking way.
Take a look at this weekly chart while your smiling from my joking, while taking a look at this triangle it has been building ever sense 2015.
I’m looking to place a stop buy just over the resistance top on USDJPY around 109.70. What I’m seeing is a stop hunt and there are plenty of stops above that resistance zone ( pink line )
Gray colored channel also points to the weekly triangle top line that is close to the 110.50. That’s right I feel a stop hunt could break this one over resistance and at least up to the round number 110.00 or the weekly triangle ( black top trend line ) 110.50 ish.
I have formed this opinion and trade idea off the way it bounces off the 200 day moving average lighter blue line and the most recent shorter term swing low. Being that it’s behind the stocks moves of late, this adds fuel to the idea. Throw into the mix that the official China trade deal first stage signing is supposed to take place on 1/15/2020.... that’s this week—I can see stocks moving still higher and just maybe a USDJPY breakout and old fashion stop hunt.
All the best in your trades.
As always, trading Forex is the easiest hard money you’ll ever make. Plan your trades and trade your plans with your individual risk management.
