USDJPY – Strong Selling From Big Figure
As I wrote about in prior commentaries, the USDJPY had key resistance up at the big figure in 110, and then 110.60.
I bought yesterday on a pullback into the 109.49 support level and held till 110 as I was suspecting some initial selling interest first trip to 110. Turns out that assumption was correct as the pair sold off over 110 pips from the highs, closing below the 109 figure (1hr chart below).
I exited for a +3R profit and +50 pips for the third profitable trade in a row in the last 6 trading days simply trading with the trend off key levels. Notice I wasn’t waiting for price action signals, which would have missed every single trade I profited from. I was simply trading the levels.
With the solid selling, short term bias is neutral to slightly bullish, while the medium term trend is still up. If the pair can find aggressive buying interest today, then the bulls were happy to buy on a dip. But a close below key support around 108.45/30 would suggest a deeper unwinding and profit-taking.
In today’s daily members trade setups commentary, we also discussed the EURUSD and potential levels to trade, the live trade setup I have in AUDUSD, the live trade setup I profited from on the NZDUSD, the Nikkei breaking below key support, the FTSE approaching a key level, and the S&P break lower.