Forex Trade Ideas: Trading the USDJPY Reversal
As of yesterday I went short the USDJPY on the clear risk of short-term correction, and I'd like to remain short subject to certain conditions.
I closed my long-standing USDJPY position, which I had first opened in September of last year. This is not a decision I undertook lightly. But I think the risk of reversal is too great.
I went short USDJPY from ¥89.73 for the reasons I describe in my weekly webinar, and I will close said short position if we see a daily close above ¥90.20.
I would ideally see a break below 87.80 to keep full confidence in the position. If that happens I will trail the stop on the short accordingly.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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