Tanalys

USD/JPY Pushing Towards Month High before Bank of Japan

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-The USDJPY has recovered off of last week’s lows and is nearing the October high (99) ahead of tonight’s Bank of Japan rate decision.

-The Nikkei reversed sharply off of trendline resistance last week. The USDJPY was unable to come close to its trendline resistance near 99.70. In general, the Nikkei held up while the USDJPY languished. This dynamic occurred in July (at tops).

Trading Strategy: This market is in a tight range and coiled for a big move. Many assume that the eventual breakout will be higher. It might, but it’s possible that the eventual break ‘surprises’ to the downside. We’ll trade it either way when it’s ready.

LEVELS: 97.50 98.04 98.30 | 98.77 98.99 99.66

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