unexpected move by USD/JPY

[alroughani]

The pair has broken the 118.30 tonight and went up to 118.65 before the European open

This unexpected move was triggered both by the EUR selling and also the better than expected US weekly jobless claim to be annouced this morning NY time.

However,

ECB (EUROPEAN CENTRAL BANK) annoucement at 12.45 GMT should put this trend on hold.

On top bypassing 118.50 carries the risk for USDJPY to fully correct
the December fall and rise back to 121.20, a process that could last another 2 weeks, and seems rather unlikely.

I am still in favour of USD/JPy retracement to 117.70 before heading higher.

 

[alroughani]

Light, how are you? i know that you are short on USD/JPY at 118.22 and i am also short at two different levels and so far watching the market carefully, i still believe that the pair should correct down at least in the European session .

SO good luck, and let me know about any interesting ideas

 

[alroughani]

USD/JPY is overbought in many charts including 30min, hourly, and 4 hourly and soon the daily so the next move should be correction to to at least neurtal position with a target of 117.70

 

[alroughani]

After the annoucement of US non-farm payrolls on Friday noon time, and given the rise in the figure all USD traded higher and broke most of the resistance levels in their counterpart pairs esp the EUR,JPY and CHF

So the previous resistance level at 118.80 now behaving like a support level and the next move should be at the next resistance level at 119.50
and even higher to the high in November 05 which is 121.00 figure

I will update you with the hourly and daily charts soon