Background
USDJPY is showing a similar short-term pattern as in last week's trading, where it is being sold off fairly sharply in the Asian trading session, only to be picked up again in Europe and eventually to go back into an offered mode again in the US trading session. We look for a similar pattern to emerge in today's trading and in particular, look for the spot breaking the 102.23 level in the afternoon trading to enable a move below the overnight lows. We will only establish this short positioning in USDJPY at the break of that level, however.
Management and risk description
To keep the overall risk exposure in check, we limit the size of the entry order to a half nominal trade order. The trade will also be protected with a tight stop-loss order that will be adjusted to entry level once the first profit target has been reached.
Parameters
Entry: sell a half-size order USDJPY at 102.23 stop if offered.
Stop: buy USDJPY stop bid at 102.40.
Target: first target is at 102.08, where we will lock in half gains and move the stop to entry. The second target is at 101.85.
Time horizon: intraday.
Short-term USDJPY chart
5-year USDJPY chart
USDJPY is showing a similar short-term pattern as in last week's trading, where it is being sold off fairly sharply in the Asian trading session, only to be picked up again in Europe and eventually to go back into an offered mode again in the US trading session. We look for a similar pattern to emerge in today's trading and in particular, look for the spot breaking the 102.23 level in the afternoon trading to enable a move below the overnight lows. We will only establish this short positioning in USDJPY at the break of that level, however.
Management and risk description
To keep the overall risk exposure in check, we limit the size of the entry order to a half nominal trade order. The trade will also be protected with a tight stop-loss order that will be adjusted to entry level once the first profit target has been reached.
Parameters
Entry: sell a half-size order USDJPY at 102.23 stop if offered.
Stop: buy USDJPY stop bid at 102.40.
Target: first target is at 102.08, where we will lock in half gains and move the stop to entry. The second target is at 101.85.
Time horizon: intraday.
Short-term USDJPY chart
5-year USDJPY chart
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