- USD/JPY double top risk increases with a mildly negative candle on the weekly chart. Yen benefitting from safe haven status as war concerns increase.
- EUR/JPY had collapsed almost 300 pips at one stage on Friday from Thursday's high, in the flight to the safe haven Yen. The pair remains in a 1 year sideways trend with no other pattern to rely on.
- CAD/JPY remains very volatile in the 5 month sideways trend, making it difficult to hold a trade for more than a few hours. Certainly cannot hold a trade over night.
Today's Analysis
USD/JPY had huge double top risk with a high for the day at the January high. If you did try a short, we broke first support at 115.70/60 to target 115.30/20 with losses as far as 115.00. On the open, holding support at 115.28/25 allows a recovery to resistance at 115.65/70. A break above 115.75 can target 116.00/10 before a retest of 116.20/30.
For scalpers, we have support at 115.30/20 and 114.93/88. Risking 20 pips to try to scalp a 30-40 pip profit is probably the best strategy I can suggest in these volatile conditions. Further losses however target 114.58/53 with strong support at 114.30/20.
EUR/JPY levels for scalpers in the large, longer term sideways trend are: 131.20/30 and 131.95/132.05, 132.55/65 and 133.05/15. On the downside, look out for some support at 130.70/60 and what should be strong support at 130.15/05. Longs need stops below 129.90.
CAD/JPY should have support at 9040/30 and resistance at 9100/9110. In the middle we have a minor level at 9065/70 so I would scalp these levels if the opportunity arises. A break above 9120 can retest last week's high at 9160/70. A break below 9020 targets 8990/80, perhaps as far as 8930/20.
Video Analysis