Pick of the Day: USD/JPY

For today’s pick we are focusing on the USD/JPY pair. On the one hour chart it looks like the pair is in a corrective three wave pattern, with it possibly continuing further to the downside. Now, we do have US economic reports coming out in the form of Consumer confidence and existing home sales at 10:00 am EST. Both reports are forecasted to be down from the previous month, confirming a slowdown in the US economy. So, we may see US dollar weakness within the next trading day or so, and here’s a trade to take advantage of that:

Short USD/JPY at 116.50, stop at 116.75, pt1 at 116.30, pt2 at 116.00