The USD/JPY pair continues to consolidate but did see a little bit of strength during the day on Tuesday. This bounce was from the vital 112.50 level initially on Monday, so I believe that the longer-term uptrend should continue. However, I recognize that the volatility should continue so it’s possible to trade in both directions.
Today’s USD/JPY Signals
Risk 0.5%
Trade can be taken at any time
Long Trade 1
Initiate long position at 113.85
Stop loss at 113.65
Take profit at 114.20
Short Trade 1
Sell at 113.35
Stop loss at 113.50
Take profit at 113.15
USD/JPY Analysis
The USD/JPY pair continues to find quite a bit of volatility but the most important aspect of this trade at the moment is the fact that the Bank of Japan will continue to do massive amounts of quantitative easing while the US will almost have to initiate at least 2 interest rate hikes to save face this year.
