Will USDJPY Rally Over 400+ Pips This Week ?
Mon 22nd May 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- USDJPY (Primary Focus Pair)
- NZDJPY (Covered In Video)
- AUDNZD (Covered In Video)
Primary Focus Pair: Overview
USDJPY
JPY continues it’s reign as weakest currency offering traders opportunities to sell.
Opposite to JPY is USD, which suggest we could see USDJPY trade higher.
When taking a look at the price of USDJPY, we can see it is trading above key resistance of 137.75.
If this continues, price could trade to the next level of resistance at 142.00, over 400 + pips away.
This could offer long term and short term trading opportunities.
For day traders, if price on a lower time frame (such as H1) begins to form higher highs and higher lows, we can assume buying momentum is continuing and we could look to buy on a pullback to a higher low.
Longer term traders may want to wait for a confirmation of a move higher before committing to a longer term move such as a breakout, pullback and retest of the current 137.75 resistance zone.
Technical Observations:
- JPY is W1 and USD is S3.
- Price is trading above resistance of 137.75.
- If price rallies higher, traders could target 142.00 resistance over 400 + Pips away.
- Day traders could look for price to form a higher low on H1 chart.
- Longer term traders could wait for a break and retest of the resistance zone.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
