For Traders

Analytical Reviews

Trading plan

08.01.202114:05 Forex Analysis & Reviews: Trading plan for USDJPY for January 08, 2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical outlook:

USDJPY has finally reversed after printing lows at 102.59 on January 06, 2021. The currency pair is seen to be trading around 103.85 levels at this point in time and is expected to retrace lower, before resuming its rally. Immediate resistance is seen at 105.65 while support is now fixed around 102.59 levels respectively.

A push through 105.65 would confirm a meaningful bottom in place and that bulls are back in control. Looking at the overall structure, it could be constructive for bulls as long as prices stay above 101.18 lows registered in March 2020. The rally between 101.18 and 111.75 has now retraced just below the fibonacci 0.786 levels around 102.59 levels.

If the above bounce holds well, USDJPY bulls might be inclined to push above 111.75 in the next several weeks. Also note that the daily chart has produced an engulfing bullish candlestick pattern as well, indicating potential trend reversal ahead.

Trading plan:

Remain long, stop @ 101.18, target is 111.75

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.