While the US Dollar Index has been in consolidation mode, the Japanese Yen has been showing strength. And this has played out over the past several months, with the USDJPY currency pair trading lower.
But this intermediate-trend lower in the USDJPY may be coming to an end soon.
And in a big way. Looking at the chart below, you can see that the USDJPY is very close to a potential major turning point.
In fact, I would rate this trade setup as one of my favorite trades of the past several years (on the chart below, I call it the trade of the year). And if 104 holds, it very well may be.
USDJPY has been following a classic playbook and is, potentially, at or close to a major low. 106-107 looks like the zone to look for a reversal. But as an experienced trader, I also understand that stops are a must. For me, I’d say this pattern (and setup) would be wrong if USDJPY falls below 104.
USDJPY Daily Chart
Thanks for reading.
Twitter: @BartsCharts
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
