USD/JPY Strategy: Triple Top Looks to Be Set Below 115.00 Figure
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- Trading Strategy: Short USD/JPY at 113.07
- US Dollar looks to have set a triple top below 115.00 figure vs. Japanese Yen
- Short position activated, looking for an initial descent below the 112.00 mark
The US Dollar looks to have established a triple top below the 115.00 against the Yen, with the Japanese currency seemingly poised to launch a lasting offensive. The pair plunged against backdrop of broad-based risk aversion that offered a familiar boost to the perennially anti-risk JPY.
Near-term support is in the 111.72-90 area (September 25 close, 38.2% Fibonacci retracement), with a break below that on a daily closing basis opening the door for a challenge of the 50% level at 111.03. Alternatively, a push back above the 23.6% Fib at 112.99 sees the next upside barrier at 113.65, the 14.6% retracement.
An intraday bounce offered improved risk/reward parameters and a short USD/JPY trade has been triggered at 113.07, initially targeting 111.90. A stop-loss will be activated on a daily close above 113.65. Profit on half of the position will be booked and the stop moved to breakeven on meeting the first objective.
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