USD/JPY Testing Multi-year High On Strong Momentum

Published On: 6 November 2023, 10:00 AM | Jeraldine Tan, Senior Dealer

Key Entry Price Pivot(s)
  •  151.75
  Recommended Trade
  • Short at 151.50
  • Stop Loss at 152.50 (100 pips)
  • Take Profit at 148.50 (300 pips)
  Alternative Case
  • Long at 152.25
  • Stop Loss at 151.25 (100 pips)
  • Take Profit at 154.25 (200 pips)
  • USD/JPY tried to test the multi-year high this week and was rejected before reaching the target of 151.945
  • However, momentum remains strong and USD/JPY is in a tight bull channel within a broad bull channel
  • Given this, we may expect another leg up to test the high before taking a breather to come back down to the bottom of the broad bull channel
  • Traders who are bearish USD/JPY from here on can structure a short trade on a re-test of the recent high (or multi-year high of 151.945 if conservative) for a move down to bottom of broad bull channel
  • Alternative case is presented above for traders who remain bullish on USD/JPY to structure a breakout trade