The USD/JPY Set to Bounce: Watching 109
Rowan Crosby • 1 min read
The Yen has been trading beautifully between the round number levels over the last few weeks and has given traders plenty of opportunities.
This is another week where I feel that the round numbers are going to play a role in looking for longer term moves. The symposium at Jackson Hole is going to steal most of the attention this week, both in terms of news and in the minds of traders. When there’s something big on the horizon I find that moves don’t quite have the follow through that they might otherwise have. This gives us an opportunity.
I want to play off the 109 level for the next day or two. I’m looking for a bullish close above 109 and a test below. So that might be a bullish candlestick like a hammer with a close above 109.
That’s going to give us an opportunity to rally and I expect there to not be enough sellers to hold this down. Of course, any fundamental news will change this trade idea. While news and economic data is light though, and traders await Jackson Hole, this level might give us some scalp opportunities.