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.

USD/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!