I’m short USD/JPY, here’s why
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
trading time frame of several hours to several days. For a free trial to
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While the general tone of the dollar (Dollar
Index, DXC) this week has been firm, it continues to struggle to make any
meaningful move higher through key resistance at 90.50-60. As of now, we
see no change in this scenario and would expect prices to fail moving too far
beyond that level over the next 24-hours.
Based on this analysis, we are short USD/JPY
at current levels (118.37). You will recall, this pair was quite weak on
Monday and the recent pull-back into key resistance should provide nice
follow-through to lower levels.
Follow Up: On Monday I
highlighted a short in NZD/JPY from 81.20, I have since covered
half of that position at 80.36 and have adjusted the stop-loss to 80.50 on the
remainder. It is currently trading at 80.02
I also had noted the USD/NOK (Norwegian krona)
– as a possible long set-up – this one however still lacks sufficient momentum
to push through the overhead resistance. Timing will be the key on this
set-up and a push higher in the dollar index will help.
As always, feel free to send me your
comments and questions.