USD/JPY Daily: Breaks below Ichimoku Cloud’s remaining inside an extended Triangle
Forex Trading Idea: Short term small range trades with resistance at 120.27 and support at 119.
Fundamental Movers: US retail sales were flat in April, while excluding autos sales rose by 0.1%. Consensus was for 0.2% and 0.5% increases for the headline and the core respectively. Separated data showed import prices dropped by 0.3% in the same month, missing expectations of a 0.3% rise.
Technical Analysis: The dollar – Yen pair continues to range inside a triangle with substantially lower volatility as the pair approaches the end of the triangle, which could be a sign of a massive breakout. With few economic data out of Japan, the pair’s movements is mostly driven by Ms. USA which was down today on bad economic data.
So for a longer term trading idea you gotta wait for a breakout out of the triangle and the pivot zone.
Where to set your stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 118.50 | 119.30 | 120.27 |
| 119 | 118.75 | 120.77 |
