USD/JPY----It goes Down and Down, will it stop below 85 only BOJ knows..

USD/ JPY is a very interesting and rewarding  FX pair to be traded.

Please see the below charts and the following comments:



H4 Chart USD/JPY  , showing its narrowing trading range

Daily Chart, showing the longer term Movement

Please refer to my recent postings on the YEN , its strengthening background due to risk aversion, as more Dollars and Euros are being dumped into YEN for safe heaven purpose.


In view of the fact that Mr. Kan's Seat is still shaky( Japanese PM ) , he may not have time to think over the Intervention process for BOJ.  as such , the probability  of  BOJ  forcing down Yen  strength is rather slim near term.


Traders are now very worried over the imminent BOJ move, as can be seen from the above H4 chart, the  trading range has been narrowing over the past two weeks.


Looking at the Daily chart above, indicators are confirming near term bearishness. The plunge below the psychological level 85.00 will be sooner than expected. As there is no more meaningful  support  between the present level and 85.00.


Trading Strategy


SELL down USD/JPY is to be continued


PUT on Trailing Stops (Critical) (In case of Intervention by BOJ)


SL===70 PIPS (Average Range)


Target: Just above 85.00


NOTE: You may use the same principles to trade Euro/jpy, GBP/jpy, but study the YEN  strength with respective to the strength of GBP and Euros.


Further Note: euro/j, gbp/j , usd/j are ALL VERY PROFITABLE PAIRS TO BE TRADED RIGHT NOW


HAPPY  TRADING