USDJPY CHANNEL BREAKOUT. TENTATIVE LONG POSITION
As I mentioned yesterday, I am keeping a close eye on growing signs of YEN weakness. As stated in that published idea, a break below the current uptrending channel is just one sign of possible trend change. Since this has been a strongly trending market, a trend change will likely look more like a range, the duration of which is still to be determined. I placed LONG orders on the AUDJPY as well as the USDJPY yesterday and currently +65 pips on each.
As for the USDJPY, the trend is still down and this NOT a contrarian trade, meaning that most retail traders are LONG on net, which is often indicative of trend continuation rather than reversal. My LONG trade, therefore, has a rathrr conservative target set @ 1.635. Moving into next week, if the YEN continues to decline against the Dollar than I will adjust my target to a 2:1 ratio and possibly add in one or two more lots.
As for the USDJPY, the trend is still down and this NOT a contrarian trade, meaning that most retail traders are LONG on net, which is often indicative of trend continuation rather than reversal. My LONG trade, therefore, has a rathrr conservative target set @ 1.635. Moving into next week, if the YEN continues to decline against the Dollar than I will adjust my target to a 2:1 ratio and possibly add in one or two more lots.
