Thank god it’s Friday.
Back in March, the Fed certainly failed to bring USD/JPY longs into play as we were watching for, but the higher time frame support level remains in play.
As you can see when you compare the daily chart above to that on the previous blog that I’ve linked to in the 2nd paragraph, it’s all about this particular higher time frame support/resistance level.
A key aspect to these major levels is not that they have been broken, but the way in which they’ve been broken. Take a look at how price had serious momentum behind it when it broke down through the level.
It was then retested from the bottom as resistance where it held and essentially reactivated.
Zooming into an intraday chart, it’s always the same. Look for a short term pullback where previous support could turn to resistance in the direction of the higher time frame level.
Something else to keep in mind is that this USD/JPY trade is similar to the EUR/JPY trade that we spoke about earlier in the week.
Let us know what you’re thinking. Mention @VantageFX on Twitter and share your ideas with the forex trading community.
Dane Williams – @VantageFX
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Source: Vantage FX Blog