USD/JPY: Trade ideas for July 22
Authored by Pelipe Erazo
The USDJPY has been recovering from the fall that had a few days ago and now, this pair has found support at the 101.13 level. Now, the USDJPY is trying to consolidate above the 200 EMA (green line), so that the next target would be the resistance level of 101.84, which is above the 500 EMA (red line).
Although for this pair to achieve this, the USD/JPY must perform a breakout in the strong resistance level of 101.45. If the USDJPY hits a pullback at this level, the next target would be the support level of 101.13. The CCI indicator is in overbought, because the line is above the 100 level.
Trading recommendations: Place buy orders only if the USDJPY does a breakout at the resistance level of 101.48, with take profit at the 101.84 level. Our bullish outlook will be invalidated only if the pair does a breakout at the 101.00 level.