USDJPY Breaks Inside Ichimoku

USDJPY Breaks Inside Ichimoku

The pick of the day is USD/JPY because at my forex workshop last night me and my students did an analysis on the pair and now I have an open position on USDJPY as well as EUR/USD, and guess what? I’m making money like a machine!

While most eyes were on ECB today, Japan is still having a moral dilemma with the Ukraine situation. On one hand, they are heavily dependent on Russian energy supplies to keep the country’s lights on at a sensible cost. On the other hand, they can’t be seen as ones to accept the idea of a land grab by another country, as China continues to claim the disputed Senkaku islands as their own. So to sum it up, Japanese Yen is weakening and therefore the USD/JPY is dancing up.

On the daily dance floor the pair is rebounding upward after the formation of a spinning top candle pattern, and failing to break below the Fibonacci level. Today it successfully broke inside the Ichimoku cloud. The daily RSI has reversed up from a strong support around 35 and is now crossing above the neutrality area for the first time since late January.

Bullish targets are at 103.318 and the previous top at 105.45. A break below 100.3 will turn the outlook to bearish with a first alternative target at 97.7.

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