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2/10/2017: Trump, Abe, and USDJPY Price Levels

Ok, maybe you clicked on this because Trump was in the title.  Trump doesn’t have a whole lot to do with where we decide to buy or sell though.  Sure, USDJPY ripped some on Thursday after Trump mentioned that we he would unveil a ‘phenomenal tax package’ in 2 weeks.  We’d been thinking that USDJPY would put in a low near 110.75-111.00 but 111.84 was also a level on the radar.  111.84 is the 5th square root progression from the yearly open price (read more about that here).  Price closed below that level on 2/6 at 111.73 but tested the level for the next 3 days and closed above each day.  That ‘action’ is something that warns of a turn (trading under a square root progression intraday but closing above).  After Thursday’s action, the following was posted in the SB Swing Update.

USDJPY 4 Hour (from 2/9 SB Swing Update)

USDJPY 240m 2-9-2017

Thought we’d get that 110.75-111.00 but Trump had other ideas.  There is a high volume level from today in USDJPY at 112.98.  The month open is at 112.79.  This makes for a nice region to buy into if given the chance.  Should also note that former lows near 112.60 would be looked at as support in the event of a deep retracement.  114.00 is the top of the channel and potential resistance but I’m looking towards the 115.00 area before considering anything worth a damn on the downside.

USDJPY peaked just shy of the resistance line on Friday at 113.85.  USDJPY dumped into 112.84 during the Trump/Abe press conference and snapped back within minutes.  You can’t trade successfully without being prepared.  The updates we write for members helps prepare them but it also prepares us!  Having these charts with highlighted levels (112.79/98 for example) makes it easier to buy USDJPY when its into the level and twitter is blowing up with reasons why USDJPY just dropped 40 pips in 5 minutes.  Screw the reasons, it’s a good level and risk is defined.  Place the bet and move on.

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