Daily Double-Top In USD/JPY Holds
Shain Vernier • 1 min read
Thus far, April has not been a good month for safe-havens. Gold is down, the Swiss franc is lagging, and the USD/JPY is on the rally. It goes without saying, but risk is currently switched on and traders have not been shy about committing capital to equities.
Next week marks a big one for the Japanese yen. The Bank of Japan (BoJ) is scheduled to give its most recent Interest Rate Decision on Wednesday. Industry experts are projecting that the BoJ will hold rates at a static -0.1%. It will be a major surprise if the BoJ tightens policy at this point, pending U.S. Q1 GDP (Friday) and a widely-anticipated 2019/20 global economic slowdown.
Double-Top Pattern Stands Tall For The USD/JPY
In a Live Market Update from last week, I broke down a trading opportunity for the USD/JPY. The trade proved to be a success, as currency players defended topside resistance at a key daily Double-Top Pattern.
Here are two levels to watch for the near future:
- Resistance(1): Double-Top, 112.07-13
- Support(1): 38% Current Wave Retracement, 111.66
Bottom Line: This market, and the USD in general, remains in bullish territory. In the event rates fall in coming sessions, going long from downside support is a solid way to get in on the action.
Until elected, I will have buys in queue from 111.68. With an initial stop at 111.43, this trade produces 25 pips on a return to the 112.00 handle.