Slow Forex Trading Day: USD/JPY In Focus
Shain Vernier • 1 min read
No doubt about it, when the forex is slow trading becomes a challenging task. Identifying setups with ideal profit targets and stop losses is difficult because of muted participation. Price often ignores market technicals as there just isn’t enough action to move it one way or the other.
A large number of market professionals view slow periods during the holiday season as a time for reflection. Studying the trading journal and evaluating the past year’s performance can be an invaluable part of starting next January off right.
The USD has gained ground against the yen this week. Today’s session has brought rotation, with topside resistance proving valid.
Depending upon where this market closes, a Doji formation is possible on the daily timeframe. If completed, this pattern will attract participation for Friday’s session.
Below are the support and resistance levels for the remainder of the U.S. trading day:
- Resistance(1): Swing high, 113.74
- Resistance(2): Psyche level, 114.00
- Support(1): 20 Day EMA, 112.79
- Support(2): Bollinger MP, 112.76
- Support(3): Daily SMA, 112.18
Bottom Line: As of this writing, price is off of intraday highs at 113.46. The daily high of 113.64 is currently serving as a proximity test of the swing high.
At least for now, price is firmly entrenched in “no man’s land.” Support levels are far below and topside resistance is suspect in the prevailing market conditions. The best course of action is to wait until the daily close and gameplan for tomorrow’s session.
The closing range will give us a concrete intraday high to establish a fresh Fibonacci retracement sequence. A buy from support may come into play for Friday’s session. Be sure to check back for ideas and analysis facing this asset if the opportunity arises.