Trend warriors huddle up!
USD/JPY is fast approaching a key trend pullback level on the daily time frame!
Think the pair will find support from the area?
USD/JPY Daily Forex Chart by TV
I don’t know if you’ve noticed, but USD/JPY’s rejection from the 145.00 psychological area got USD bears piling on their shorts like there’s no tomorrow.
USD/JPY is now trading below 140.00, which is only a few hundred pips away from the 138.00 psychological level.
Prepare to see at least one round of buying from the 138.00 zone as it’s near a 50% Fib retracement, the 100 and 200 SMAs, and the S2 (135.94) Pivot Point on the daily time frame.
More importantly, 138.00 is not far from the trend line support that hasn’t been broken since the start of the year.
USD/JPY bears can take advantage of the pair’s bearish momentum and ride the current downswing until USD/JPY hits a couple of support levels.
If you’re more comfortable trading with the trend, though, then you can start placing orders around the potential buy zones that we’ve marked.
Whichever bias you end up trading, make sure to study USD/JPY’s average volatility and to follow your trading plan to a T so you can trade for another day!
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