The USD/JPY has really been in-play for us over the last few weeks. It’s been trading in a pretty nice range and really following some nice technical levels along the way. However, it continues to try, and fail, at 113.00.

That’s OK, however, I suspect it will move higher as soon as the USD finds some upward momentum. With a raft of interest rate hikes predicted that won’t be far off in my opinion.

USD/JPY – 240 min Chart.
 

Trading Strategies

For now, though we have a few options. First, we can scalp off the 113.00 level. We’ve had a few attempts and failures. Although some of the moves through that level have been large, which makes it harder to scalp.

Secondly, we can look for a test of the 113.00 level. Long into 113.00. This is a good trade and you can use a short-term chart to find a nice entry.

Finally, we can buy pullbacks. I like the 50 SMA on the 4-hr chart as it has been providing nice support. If we pull back to 112.00 then that would be another good longer-term play.

Whatever way you want to trade it, I like the USD/JPY price action at the moment.