The USDJPY made an attempt to move higher at the U.S. open but failed to challenge its Asian session high. It subsequently made a lower high with one of my favourite 3 candle reversal patterns. We entered short risking 12 pips for a potential 46 pips to our daily target at 103.56.
The first area to get through was the 104.00 figure. Price moved lower without retesting the figure and found some buyers as it approached its Asian session low. We gave it some room to test this level and price continued lower. We exited the trade at the U.K. close in advance of Fed Chair Powell’s speech at Princeton.
Traders will be listening to Fed Powell’s speech for any clues as to interest rate hikes in the foreseeable future, inflation expectations and any dovish remarks. This may take the wind out of the sails of the recent USD strength, but the core retail sales and core PPI numbers tomorrow will also be important.
USDCAD and EURCAD were tradeable today but required larger stop losses.
Good luck with your trading!
