Shorting the USD/JPY

October 10, 2005 by Trader Rich

I sold USD/JPY this evening at 114.02. I studied technicals for the pair and came to the following conclusions:

Â¥ Solid resistance exists at 114.39 which was lightly brushed yesterday at 114.28
Â¥ Japan economic indicators have remained strong. Machine Order
announcement tomorrow is expected to indicate a rise
Â¥ Ichimoku support cloud is at 111.27 and 38.2% Fibonacci Retracement for September low and October high at 112.45
Â¥ Comments by U.S. Treasury Secretary Snow stating that he and the
other G7 countries share the view that China should strive towards a
more flexible FX system. Remember my previous post that proposed
that reevaluation of the yuan could boost all Asian currencies

Bottom
line is with the Japanese economy doing well, I don’t expect that
resistance will be breached at 114.39. It hasn’t since
05/2004.

Ichimoku is widely used in Asian trading:

Japanese ichimoku