Is it time to buy back the Greenback? This USD/JPY setup certainly suggests so!
USD/JPY has just tested (and is now above) the 104.00 major psychological handle. I like this support area not only because it has been an inflection point since December but also because it’s near a 38.2% Fib and a mid-channel support on the 1-hour chart.
Fundamentally I think that the dollar bulls still have weapons in their arsenal. Despite the weak NFP report the Fed is still looking to taper its QE and the BOJ hasn’t veered from their plans to stimulate its economy.
I”ll be taking a chill pill with this setup though. My SMAs aren’t supporting an upward move and there might be a falling trend line since the start of the month. I think I’ll wait for a couple more candlesticks instead of entering at market or setting an order. Got any tips on entry and exit points? Your thoughts would be much appreciated!