Is it me, or is the 111.50 resistance getting too hot to handle for the bulls?
A few days ago I risked 0.25% on a potential long-term range bounce. However, I also kept close tabs on the 111.50 handle, which lines up with a falling trend line (and mid-range) resistance as well as the SMAs and area of interest on USD/JPY’s daily chart.
Well, it looks like other traders are also paying attention! As you can see, USD/JPY is having trouble breaking above the level.
And since the Fed is about to publish its much-awaited (and maybe priced in?) decision tomorrow and stochastic already hanging out in overbought territory, I decided to keep my initial profit target around the trend line resistance. I figure now’s a good time as any to bail out of the long trade.
Here’s what happened:
Closed at 111.75 for a net of +122 pips (+0.15%).
Overall, not a bad position for a few days’ worth of vigilance. Over the next few days I’ll look out for possible ways to trade the dollar again. EUR/USD’s support-turned-resistance scenario is looking particularly attractive to me. Think I should jump in?
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