Trading Rotation-Shorting The USD/JPY - Forex News by FX Leaders

Trading Rotation-Shorting The USD/JPY

Posted Friday, November 3, 2017 by
Shain Vernier • 1 min read

Since the snap election on October 22, the Japanese yen has traded in a tight range. Upon filling in the bullish post-election gap, the USD/JPY has consolidated between the macro double top pattern and the gap itself. Currently, the USD/JPY is grinding higher, bringing a potential scalping opportunity into play.

USD/JPY Technicals

Earlier this week, I issued a solid trade recommendation for the USD/JPY that added a few pips to the trading account. Today may give us a repeat performance.

USDJPYUSD/JPY, Daily Chart

The May/July double top pattern gives us a concrete out for a potential short trade. Today’s economic releases are over and the USD/JPY is rallying towards this level. A repeat performance of Wednesday’s trade is not a bad plan moving into the late U.S. session. If it isn’t broken, don’t fix it!

The Trade: A short entry at the market from 114.37-41 with an initial stop at 114.51 is an affordable way to trade this setup. Implementing an R/R of 2:1 will yield better than a 20 pip profit.

While this trade is certainly not a homerun, it provides a nice compliment to yesterday’s USD/CAD recommendation that is currently open and +30 pips. Stay tuned for up-to-the-minute trade management updates as the session wears on.

As always, trade smart and for tomorrow!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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