USDJPY – Get Ready To Short The Dollar
USDJPY Get Ready to Short
The USDJPY has been trading in a nice sideways pattern for most of 2014 and continues to do so, though this looks like it's coming to an end.
We have spotted some good divergence in both the RSI and MACD on the weekly time frames, while at the monthly time frame the MACD is about to turn negative.
Currently with the pair trading at 101.93, its possible to take a short position here with a stop above the current 103 with an initial price target of 100.70.
If you're more cautious and want further confirmation, then wait for 100.70 to be taken out before opening a short position.
Important price levels will be at;
99.93 - This is the 61% retracement level, so there will be some support here.
96.50 - This is the 100% retracement level, expect to see this if 99.93 is taken out