Forex Analysis: Stay Long USDJPY, Short EURUSD
I entered long USDJPY at 78.67. Prices pulled back to support in the 79.53-60 area marked by the August 17 close and the 23.6% Fibonacci retracement. A break below that exposes the 38.2% level at 79.13. I will continue to hold long for now but revise the stop-loss higher to be triggered on a daily close below 79.53, locking in some gains. The objective remains a close above the 80.39 level (which would expose the 81.00 figure as the next key barrier).
Separately, my order to short EURUSD at 1.2982 has now been triggered. I am targeting an initial downside objective at 1.2826, the 23.6% Fibonacci expansion. A stop-loss will be activated on a daily close above 1.3138.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.