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Trade idea: Buy USDJPY as signals improve
Steve Lucas from 3c Analysis is looking to buy USDJPY; after buying the cross on Tuesday he says signals have improved and he expects this to continue.
He adds that buying in Asia has ended a sequence of lower daily highs, and the Dollar Index has formed a daily "Morning Star", which is supporting the "buy dollar yen view".
But he warns gains will be temporary, while a sequence of lower weekly highs remain in place.
As a result, Steve is looking to buy on the open and at 97.15, with a stop at 96.82, today’s Asian low.
The dollar got some relief against the yen on Wednesday on news that US President Barack Obama has tapped dovish Federal Reserve Vice Chairwoman Janet Yellen to head the US central bank.
However, the US budget impasse kept the dollar low against most currencies.
Hopes are fading that a resolution can be reached before the mid-October deadline when Congress must decide whether to raise the government's borrowing limit or face the risk of an historic debt default.
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Tags: america, asia, asian markets, barack obama, budget, bull market, bullish, bullish sequence, debt ceiling deadline, dollar, dollar index, dollar yen, invest, investing, investment, japan, japanese economy, japanese yen, jpy, market risk, markets, profit, profit making, risk, saxo bank, saxo tv, the states, the us, trade, trade idea, trader, trading, tradingfloor.com, us budget, us debt ceiling, us economu, us government shutdown, us president, us shutdown, usd, usd jpy, video, yen