Okay so my EUR/USD forex setup was a no go last week. What do you think re-entering USD/JPY’s uptrend?
After breaking above its range after the NFP report was released, USD/JPY went on its merry way back to its 2014 highs. Do you think USD/JPY is about to show another uptrend?
If it does, then the 119.50 area is certainly looking like a good entry spot. Aside from the 50% Fib retracement support on the 1-hour chart, the level is also near a rising trend line and 100 SMA support.
On the fundamental side, the dollar is still a prince among thieves. With European officials yet to produce results over Greece’s debt dilemma, oil and commodity prices falling, commodity-related countries printing weak data, and the U.K. possibly dealing with deflation, the low-yielding Greenback is looking like a good bet.
A 150-pip stop loss from a 119.50 entry would put the stop below the 200 SMA and near the pair’s previous resistance area. I’m also considering a market entry if the pair doesn’t dip to the level, but only after it has tested (and broken) above the 120.70 psychological area.
What do you think about this? Is it too early to call another USD/JPY uptrend, or has the pair run its course and is due for a deep pullback this week?