This is our second article for the USD/JPY pair this month: the first one from Sept 4 mentioned that the pair broke the trend line. That is why we sold the USD/JPY at 109.66 and took our profit at 108.50 with +116 pips. Then we recommended buying the pair if it returned back above the trend line - we bought it at 110.17 and the prices hit the target at 111.40, so we collected 123 pip+116= 239 pips in total. Today we will take a look at the chart to search for new opportunities.
The pair returned back to trade inside the triangle above the key support level at 110.75 ahead of the next resistance area 112.70-90. The MACD indicator’s columns are above the zero level and the moving average is trading below the prices, so the positive scenario is preferred in the coming days, especially after the FED mentioned we can expect another interest rate hike this year.
The Next Few Days
After we saw the prices returned back inside the triangle pattern we can buy the pair now at the current levels 111.90 and close it at 112.70, then wait for the resistance level breaking out to buy it again at 113.10, keeping our target at 114.30. But if the pair returns again to retest the support level 110.75, then we can buy the pair again.
This week we have much hot news from the United States, such as the CB Consumer Confidence and Yellen’s speech today, in addition to the Core Durable Goods Orders, and GDP data. From Japan we are awaiting Kuroda's speech on Thursday.
