FX.co ★ Trading tips for USD/JPY

The Bank of Japan has stepped up the defense of its stimulus system, causing yen and bond yields to fall sharply.

In their meeting on Wednesday, BOJ Governor Haruhiko Kuroda left key policy parameters unchanged, keeping it at -0.1%. The target yield on 10-year bonds was also left at around 0%.

Yen noticeably weakened after the news, prompting USD/JPY to rise.

Now, there is a three-wave pattern (ABC) in which wave A represents the buying pressure in the pair. Traders can enter the market by opening long positions from the current prices up to the level of 129. Set stop-loss at 1.228, then exit the market upon the breakdown of 131.62.

This trading idea is based on the "Price Action" and "Stop Hunting" methods.

Good luck in trading and have a nice day! Don't forget to control the risks.