Part two of this week's guest trader series
Martin Nikolov is a Bulgaria-based professional trader who joins us this week to talk about how he sees markets. In part one, he explained his 8 principles to trade by. Today he sees a setup for USD/JPY shorts.
USD/JPY retracts from 23.6 Fibonacci retracement
My trading instrument for the day on the watch list is the Japanese yen, and more specifically - USD/JPY. The pair presents a nice set up for taking short positions. Technicals and fundamentals are backing the idea for selling the USD/JPY and I'll explain you why.
Currently the price still remains below the 50 and 200-day moving averages, pointing to a bearish bias. Though risk hasn't improved, I would expect the down movement to continue in the short - term horizon as things with Iran and Iraq are not quite yet settled.
With these factors in, I would wait to see if the price manages to close below the 23.6 Fibo, without making a new high as well, because on the daily chart we will have double tweezers bearish price action. With that a trading idea opportunity reveals and I would short on the next opening. I would place my stop loss at 109 price level, as it is according to my rules of SL within 1% and above all zones of possible stop hunting.
Check back with you tomorrow.
