USD/JPY Weekly Forex Signal- Sept. 8, 2014

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By: John Ursus

Timeframe: W1

Recommendation: Short Position

Entry Zone: 105.000 – 105.500

Take Profit Zone: 101.750 – 102.250

Stop Loss Zone: 106.250 – 106.750

The USDJPY enjoyed a strong rally over the past 33 trading months. The sharp rally took this currency pair from an intra-day low of 76.021 to an intra-day high of 105.694 where the rally stalled and price action started to reverse. This currency pair has now formed a rising wedge formation and could exercise downward pressure on the USDJPY over the next few trading weeks.

Forex traders should watch out for the support level which is ascending in the current rising wedge formation as a breakdown is expected to sharply increase selling pressure in this currency pair. Forex traders should consider splitting their lot size into multiple entry positions across the rising wedge formation in order to decrease the risk on this trade. The upward potential appears to be rather limited while the downside potential remains very attractive.

USDJPY 9814

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.