The USDJPY was fairly subdued in trading until the U.S. session got underway where we chose a long entry risking 7 pips for a potential 22 pips to our daily target at 108.98.
There was a little bit of up and down as price moved toward our target, but price continued to make higher lows on shallow pullbacks. This pair tends to move from figure to figure on active days and it currently is running into resistance just above 109.00 today. If the risk on sentiment continues then be very careful at 110.00 which is a very important level.
It will be a very busy week with interest rate decisions by a few central banks. The market is pricing in a 90% probability of a 25 bp cut by the Fed. The U.K. is poised for a general election announcement with a date to be determined in December. Phase 1 of the U.S. – China trade talks continues to look viable this week, and on Friday we will have Nonfarm payroll.
Hold on to your hats and good luck with your trading!
