USDJPY year end price action
After Fed’s headlines and especially Powell’s press-conference on Wednesday all the hell broke loose. Stock markets sank and USDJPY also switched to safety mode. The drop was reinforced by dollar’s decline and on daily chart it is the first sign this year ongoing bullish trend has been broken. This is a serious sign.
Now, the daily chart indicates the price broke below 112.30 and 111.80 – two significant support areas and I believe this fall will likely to continue down to eventually 110.35 – which is another strong support cluster. Cautious traders can place Buy orders at around 110.40 and risky traders can initiate longs at current levels – meaning around 111.20. Smaller scale charts – for example 4-hour chart is extremely oversold and therefore the chances of temporary bounce today are rather high. As we are approach holidays and I believe 110.35 support will hold, unless some catastrophic situation happens on stock market during last trading days of the year.
This trade tactical buy and is intended for quick profit only. Overall, liquidity is getting thin and this is a time to wrap-up trading in anticipation of the year end.
I would like to wish all readers a great weekend and a very Merry X-mas for you and your families ! May all your dreams come true !