Short-term Technical Setup on USD/JPY?
On the one hour chart above of USD/JPY, we can see that the market broke from a short-term downtrend, after bottoming out around the 102.60 handle.
The bulls have taken it up to the area of previous resistance around 103.40, which happens to coincide with the 50% – 61% Fibonacci retracement area. We’re also seeing Stochastic signal potentially overbought short-term conditions.
With the U.S. dollar in a longer-term downtrend, and the potential for risk aversion sentiment to rise as we see chaos erupt on the U.S. political scene (Rioters storm Capitol after Trump urges action, halting declaration of Biden victory), will there be a quick bearish turn around in USD/JPY back to the previous swing lows and beyond?
What do you guys think? Will today’s turmoil in Washington, D.C. drive more bears into USD/JPY short-term?
Let me know in the comments below, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.
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