USDJPY reverses fall. Trades at session highs.

Technical Analysis

Author: Greg Michalowski | usdjpy

Higher stocks. China/Russia solution reverse some of the flight to safety

The USDJPY has snapped back.  Higher stocks and the report that China/Russia have a plan to defuse the tension has the flow out of risk easing a bit.  


Gold is back negative and the USDJPY pushed higher.   

The risks to trading are starting to move to the headlines and when those headlines are random (i.e., a tweet from Trump, or a headline that Russia and China have a plan), trading becomes more difficult - mainly because you don't know when the next headline will come. 

Do technicals still work?  Looking at the hourly chart above,  the price spiked higher, but then ram into the broken trend line and stalls.  If you are quick you sell perhaps with stops above, but at the same time, you get out on the dip lower and be happy booking some pips. A break above the trend line will look toward the 109.61 retracement area (barring no random headline).  

Stocks are opening with gains. The S&P is up 4.60 points or 0.20%. The Nasdaq is up 18 points or +0.29%.