USDJPY Take Risk on Swing Trade with Small Volume

17 ต.ค. 2022

149 remains a crucial level for near-term price action and then the 150 psychological level. The RSI remains in overbought territory however, pullbacks have proven to be short-lived even if we do see a reasonable move lower on talk of possible intervention – which may be implemented during periods of lower liquidity. For now, the trend remains to the upside as it appears markets are happy to test Japan’s resolve. Support comes in at the prior high of 147.69

The 4-hour chart reveals what appears to be a ‘bull flag’ – a typically bullish formation.

HOWEVER

The longer USD/JPY trends higher, the likelihood of intervention increases meaning risk management becomes ever more important in a trend following strategy at these extreme levels.

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