USD/JPY: 2019

Back and a new year and once again I have been slacking for the last month due to exams and laziness of course. But back on and hopefully this time I can keep some consistency.
Over the Christmas period we have seen exciting excessive movement in the US forex market, with a heavy dip falling substantially from the upward trend we have been seeing for the majority of 2018. Looking at the dip its something which does look quite surprising and I reckon the inability for Trump to get his way leading to the longest lockdown in US history taking place has for sure affected confidence in the US dollar.
The fall did test the yearly low for a minute, the 104 region, pretty damn impressive but did retract almost straight away.
This position does look of interest, I have drawn in where I reckon the next resistance level is, the top end of 109. I believe this looks realistic as shown by the 3 arrows highlighting what I reckon are resistance levels which have been hit over the last 8 months. Thus this position could be of interest, furthering this point, we do find that RSI is reaching the cool-off point at 99 which was hit in almost every month and thus a drawback I don't believe is unrealistic.
If the drawback does come apparent in the next week or so I reckon we have the 108.6 position for the next resistance level, which could allow momentum for gains to be obtained to wipe out the huge decline seen over the last month.

I like the look of this and entry for a short at the next resistance point is something I would be looking at if I was going to enter. But of course this is all my opinion so I could be completely wrong!
I will be doing some look into the GBP/EUR I reckon over the next week or so as the Brexit discussions and negotiations do lead to huge fluctuations in the markets and if caught correctly could be hugely positive.

Peace.
The Naive Trader.


TradingView, 2019.