We see the primary trend for USDJPY to be an uptrend, but price has recently softened. We like the idea of buying near the double bottom around the 110.40 area, with a protective stop around 110.30, with a preliminary target for at around 110.80.
The Dow is currently in a rising H4 channel, and despite the past 2 day’s selloffs around the US open, price subsequently rallied and has not been able to close below the channel. As such, we remain cautiously bullish on the Dow, with our preference being to initiate short term long positions at the bottom of the channel, and taking profits either at the top of the channel or near the record highs near the 35,000 area.
Though the DAX has been consolidating of late, at yesterday’s close it broke out at the top of the range. We would like to see whether this breakout continues, or not and would not add to our Longs until this break is confirmed. If the breakout fails, our preference will be to wait for price to retrace further towards the bottom of the range, before initiating a long position, possibly avoiding a short into the move.