Who wants to trade the USDJPY?

Hey traders, how is your trading going?

What do you think about the USDJPY?

Yesterday I was talking to a trader friend and asked him the same question… He said we wouldnt trade it… its been going up and up and up, and he thought the USDJPY was going to retrace pretty soon…

What do think about that?

Look, I agree with him (in some way), eventually the USDJPY will retrace back… but what if it is in a week from now? If we watch on the sidelines, we’ll lose plenty of opportunities just because we think the market is going to retrace back…

My final argument was that we need to trade what we see not what we think… If the USDJPY is going up, then look for long opportunities.

What are your thoughts?

USDJPY Long Term Analysis

USDJPY Long Term Analysis

Its clear that the USDJPY is going to continue its way up. Just broke through an important resistance level and it is likely to continue its way up at least until it reaches the next LT resistance level around 110.27.

It is currently trading at 102.29, so we have plenty of room to look for our trades, around 800 pips.

We now have a plan to trade the USDJPY… and now its time to look for our trade on the short term charts.

USDJPY Short Term Analysis

Here is the hourly chart:

USDJPY Short Term Analysis

My plan here is to wait for the market to get back to the short term support level, and if the USDJPY gets strongly rejected (with upward pressure: any significant bullish pattern) from that level I’ll go long.

Sounds like a good plan to you?

Your Turn

What do you think about the USDJPY?

Do you usually wait for a retracement, or just trade what you see?

Please comment

USDJPY Analysis

Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .