The USDJPY is trading at the highs for the day – continuing the recovery started after stock declines bottomed and started to recover.
USDJPY hourly chart
Looking at the hourly chart above, the price over the last few days has been more of a wander higher. The pair is in a channel with 119.30 on the downside and 120.25 the topside trend line. The price is also above the 119.55 area which was the high from December 11. The highs from Friday’s slow NY afternoon trading stalled near that area. When the price moved above this level earlier today, there was an increase in upside momentum. This should be a closer risk defining level for traders going forward (ahead of the lower trend line).
This week – and into the New Year – can be characterized by illiquid trading activity. That can make for slow markets. It can manifest itself in choppy markets. So be aware and trade with the thought process. Be patient. Don’t fall in love, fall in like. Take profit if you get on the right trend. Trade against tech areas to limit risk. It is not time to make your year. For many it is the time to prepare for the new trading year.
