We have added confluence to this trade via the blue which we can see has previously been well respected and therefore this increases confidence that this will serve as an area of support.
Fundamentally, we have seen the dollar finally start to show some weakness today following the steep decline in US equities caused by the growing market fears of a Corona Virus pandemic. However, it is my view that this will be a short lived decline for the dollar. It is still perceived to be the strongest economy in terms of weathering an economic slowdown should the virus continue to worsen. The Yen on the other hand is facing a weakening economy which will only get worse given its closer exposure to China, therefore this correction is USD/JPY is likely to be short lived and we look to take a long position using tech analysis to find our entry
I have taken partial profit at 50 pips and tightened my stop loss to a few pips outside of the purple zone as the impact on the virus is looking likely to weigh on the dollar in the short term
The next profit target is the 111 area