USD/JPY: Dips below 154 have been short lived
This is a quick and simple setup based around the assumption that support will continue to hold for USD/JPY.
The market found support at a high-volume node (HVN) last week. And each time the market has either tested or traded beneath the 154 handle, it has been accompanied by heavier volumes and a subsequent move higher. This suggests bears have been burned trying to short at the cycle lows and then forced to capitulate.
Given we're in the Asian session with no top-tier calendar events, and for now at least Trump's tariff headlines are in the rear-view mirror, we're looking for another bounce from / false break of the 154 handle.
As this is simply a mean-reversion setup, we're not looking for a home run.
Matt Simpson, Market Analyst at City Index and Forex.com
The market found support at a high-volume node (HVN) last week. And each time the market has either tested or traded beneath the 154 handle, it has been accompanied by heavier volumes and a subsequent move higher. This suggests bears have been burned trying to short at the cycle lows and then forced to capitulate.
Given we're in the Asian session with no top-tier calendar events, and for now at least Trump's tariff headlines are in the rear-view mirror, we're looking for another bounce from / false break of the 154 handle.
As this is simply a mean-reversion setup, we're not looking for a home run.
Matt Simpson, Market Analyst at City Index and Forex.com
Trade closed: stop reached
Strong wages data from Japan has boosted bets of another BOJ hike, sending USD/JPY further below 154 than we'd have liked.
Not ideal, but least it was quick.
MS
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.