USD/JPY fell hard on Wednesday (15th, October) to touch 105.18 directly affected with the stock market selling festival, However it bounced again to 106.50 level. This is what I call the calm area before the storm, so we will play the smart moves and be really quick in handling this signal. The USD/JPY has the following major resistance and support levels:
- RESISTANCE: 110.08
- SUPPORT: 105.15
Breaking these levels in any direction will take us higher or lower.
My Daily BUY/SELL advice (30 pips stop loss applied):
- Sell: at 106.20 – Take profit 106.10 (10 pips profits)
- Buy: at 105.80 – Take Profit 106.20 (40 pips profits)
- Buy: at 105.50 – Take Profit 105.90 (40 pips profits)
- Buy at 106.40 – Take Profit 107 (60 pips profits)
QUICK HINT: USD/JPY is entering a new wave of bullish momentum but, the trend is still weak and the bears are still in charge. Take quick trades with very small stop loss points (less than 30 pips) if you can and do not over wait till it hits the previously mentioned targets, if you feel that the trend lost momentum, get out with the achieved profits, as always.
This signal is valid on Wednesday 22nd, October 2014