USDJPY Binary Options Strategy: Don’t Get Tangled

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USDJPY Technical Analysis

USDJPY 60min chart suggests there is a greater potential to the upside than for further selling, however, the price must have the ability to break above key levels in order to reconfirm moderate gains in the Forex market. This analysis appeals to all types of binary options traders.

USDJPY 60min Chart

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USDJPY 60min Chart 18/08/15

USDJPY 60min Chart 18/08/15

USDJPY Binary Options Strategy

USDJPY may be initially be confined to a relatively tight range,  124.35 – 124.48. Similar to our EURUSD intraday analysis, these price levels are likely to be capitalized on via intraday expirations, ranging from 60 seconds to 15 minutes. All that is required is a successful re-test, preferably at the 60min close. A break above 124.48 may provide temporary gains in USDJPY as the next resistance is within a near proximity (upper blue line). A re-test of the upper resistance on the 15min chart may provide a brief opportunity for put binary options via 5min – 20min expirations on the first test. Should the market break above the upper resistance further gains are expected towards 124.68.

A break below 124.35 may lead to temporary weakness in Dollar Yen as a nearby support is ready to confront any bearish attempts to drive the price lower. Similar to other scenarios we presented in this strategy the price may initially rebound off the lower support (in blue), which may create a window for short-term trades. A break below the lower support (in blue) may re-ignite the selling in USDJPY but nearby support (in brown) may contain the weakness, providing more room for short term trades or 15min expirations.

A firm break below the support line (in brown) may lead to corrective weakness but again, a firm support level at 124.10 may hold. This re-test however is unlikely to be suitable for short-term trades. Upon a successful re-test at the 60min close an expiration between 30min – 60min is suggested. Only a firm break below 124.10 may confirm further losses are due, targeting 123.82.

It is difficult to predetermine whether our USDJPY intraday strategy will still be relevant when the FOMC is due but we wouldn’t be surprised if certain levels should be closely paid attention to on Wednesday. To recap, there were expectations for the Fed to hike rates in June, which were postponed to September. If the Fed will hint it will hike rates in September the US Dollar may enjoy moderate gains in the market, strengthening against a basket of currencies such as EUR and GBP.  If the Fed will refrain from raising rates in September, which is what we predict the US Dollar will be beaten across the FX board, especially against the Euro.

To conclude, Tuesday appears to be an attractive day for short-traders in the binary options market. We remind you that using expirations such as 60 seconds or 2 minutes involves a great risk but we are striving to appeal to all types of traders in our market analysis.

USDJPY 60Min Chart, 20 August 2015

Please click on the chart to enlarge:

USDJPY 60min Chart 20/08/15

USDJPY 60min Chart 20/08/15

As you may see multiple entries were given using our technical analysis for the binary options market.

When USDJPY strategy was published it was only available to traders that have signed up for our intraday strategies plan.

To view current and future intraday strategies for the binary options market sign up for our intraday plan. See details.

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