Where we're at
Another one from today's daily market themes blog that I wanted to discuss, was what I'm seeing on USD/JPY.
Here's the extract:
"Forex high level view
The dollar recovered from early losses as US bond yields climbed along with the s&p500. The 10 year T-note yield jumped closer to the 3% psych level, around 2.96%.
So that means prices were lower across the board as USD/JPY found support at the retest of a beautiful trend line I'm going to go through in greater detail too. I'm sure you have this one on your chart and some of you will be happy today."
It's definitely on a few of your charts:
With all the chat around Japanese yields and a strong Yen, this technical level is at least a bit of a road block now we're here.
I just don't want to be catching the falling knife here. You see these sorts of breakout and retests fail so often. It's one of those setups that's almost too textbook and therefore never actually plays out in real life.
Just remember that these sorts of levels can be broken and reactivated from the other side. So in this case if price dropped through it with the momentum, then retests it as resistance, well that's just as significant.
If it's on your chart, how are you playing it?
