In our recent report from last Friday about the EUR/JPY we recommended selling the pair at 123.50 and that’s exactly what happened. Like magic the pair rose to the highest level at 123.71 and declined to 122.35. We’re still keeping our negative forecasting for the pair (you can read the report here).
Today we will take a look at another Japanese pair - the USD/JPY.
The US Dollar is still trading in a tight area against the Japanese yen after breaking the price channel in the chart below around 116. It’s trading below this level, so we can see more negative movement in the coming days; the King dollar will likely finish its uptrend rally soon.
We’re expecting that the pair will rise a little to touch the SMA50 on the H4 chart and decline again. The RSI and Stochastic indicators gave us a buy sign, so we have to wait and sell the pair later.
The Next Few Days
From this analysis, we can sell the pair when we see it around 116.50 and make our first target at 114.75. If the pair breaks it we might see it at 113.16. On the other hand, if it breaks up from 116.70 we can buy it to 118.40.
We have to be careful as any economic news may affect the market, for example, the unemployment change from the US on Thursday and Yellen's speech on Friday at 12:00 am GMT.
