Fed Pullback Brings USD/JPY Longs into Play

We’ve been following the current USD/JPY narrative on the blog for a while now, with price above a higher time frame support level, but now capped inside a range as it tries to work its way higher.

Obviously yesterday’s USD negative Fed rate hike kept price within this range and brought price back down again.

But to me, so long as we’re above this following daily level…

USD/JPY Daily:
Click on chart to see a larger view.

…then long are in play, and any short term pullback such as this is there to be bought.

Short term pullbacks to levels such as this…

USD/JPY 4 Hourly:
Click on chart to see a larger view.

…where price is obviously at least starting to react.

Just keep in mind that earlier in the week I’ve been talking about shorting EUR/JPY.

Whether you take this setup or stick with EUR/JPY shorts all depends on your own personal bias which I’d love to hear about with a mention of @VantageFX on Twitter.

Open a live forex trading account and take advantage of Fed driven market opportunity.

Dane Williams – @VantageFX

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Source: Vantage FX Blog