Strategy: Long at 87.11, Targeting 88.80
Weekly Profit / Loss: -30 pips
Total Profit / Loss: -59 pips
Last week, we went long USDJPY at 87.11 in line with our fundamental outlook after prices confirmed an Inverted Hammer reversal signal with a strong bullish close on the following day’s candle, with positive RSI divergence further bolstering the case for an upside scenario. The pair tested above the 88.00 figure but bullish momentum has given way, with prices now tracking dangerously close to our stop-loss level. Still, we will stick with our established trade parameters, activating the stop-loss only on a daily close below the 7/16 wick low at 86.26. The initial target remains at 88.80, the 38.2% Fibonacci retracement of the 6/4-7/16 decline.
USDJPY Spot (Daily Chart) - Created Using CQG, Prepared by Ilya Spivak
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