USD/JPY Trading Idea
USD/JPY is continuing its downfall. Let’s have a look at the analysis below
by: Colibri Trader
The previous week was an interesting continuation of a week full with BREXIT speculation. We have seen the Pound go up and down and experience volatile trading sessions. The week was interesting for gold and silver as well. We have seen quite a few great trading sessions for both metals. As you can remember, I shared with you my bullishness towards these metals. I even wrote an article on an ultra-long term investment ideas, which you can find HERE. All of these shares have risen over 100% and one (First Majestic Silver Corp) was even up about 400%. This was a great trading article and if you haven’t read it so far, I strongly advice you do so. I believe it is not too late to still go long in some of them.
The USD/JPY pair has been under-performing recently. I have not been really overing it recently, but now I can see a bearish formation, which I want to walk you through. As you can see from the chart above, we have a bearish engulfing candlestick formation. It formed just under the 104.00 resistance area. Usually, those formation are better to trade, because of the significance the resistance area carries. I will be looking to go short at the open of the market or if I see a correction towards 102.50. My initial target will be the level of 100.00 (strong psychological level). Most likely, we will see price testing the 99.00 level, which is also a support level, so that will be my secondary price target.