In yesterday’s USDJPY video, I highlighted the upside roadmap given the strong trend bias. At the time, I noted that a break above 155.43 would open the door toward the next target at 155.88, and that a move above that level would put the key swing area near 156.73 on traders’ radar. (You can revisit that post HERE.)
In today’s trade, USDJPY pushed through 155.88 with strong momentum, and that follow-through has now carried the price right up to the 156.73 target. The high just printed at 156.71, two pips shy of the level, and sellers have begun leaning modestly against it. The pair is currently trading near 156.59.
Why fade a trend move? Because risk is clearly defined at this kind of level. Sellers can lean against 156.73, keep stops tight on a break above, and if the market rotates back below 155.88, they look like heroes. If it breaks above 156.73, they simply exit and reassess. The same logic applies for any new short positions being placed here—trade the level, not the hope.
The market has now stretched to a key target on the roadmap, and that often invites some consolidation or corrective probing, even within a strong trend. Be aware. We’ve hit a key target.
This article was written by Greg Michalowski at investinglive.com.