USDJPY Reversal

USDJPY - Metatrader platform

Long positions on the USDJPY would have been stopped out today as the pair plummeted shortly after the release of the Federal Reserve minutes (pure fundamental).

On a more technical side, the pair has been in up trend since the start of last week.

Traders that opened position on the pair from the start of the up trend would have realized some profits before the reversal.

The pair had closed the previous week's trading on an area of resistance on the daily chart inside the ichimoku cloud. This would have caused conservative traders looking for an entry on the trend to remain cautious, as a clear break and close of the candle stick outside the cloud would have been confirmation that the pair would continue in its upward direction. On the other hand, aggressive traders that entered on a pull back to the moving averages would have been stopped out of the trade.

The best step to take at this time is to watch the pair's development over the next few days for potential opportunities to trade.

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