How to Trade JPY Weakness With Minimum Intervention Risk

Fundamentals & Sentiment

JPN225:
- Final data showed that business activity in Japan turned contractionary in June for the first time since November. Technology stocks led the advance, triggering the index to pop higher. The tech sector is the third by weight in Nikkei (~15%).

USD:
- The Fed is still in "wait and see" mode
- Recent US data has been weak (except JOLTS)

JPY
- Continuous JPY depreciation propels Japanese stocks

Technical & Other

Setup: S(B)
Setup timeframe: D
Trigger: 4h
Medium-term: Up
Long-term: Sideways
Min target: Mar high/ the end of the first breakout leg after Mar high
Risk: 1.19%

註釋

Entry: 39709

手動結束交易

Decided to take profits as the index showed some strong price action signs at the supply area that the move is due for correction. The move had a good run and some pullback makes sense. I'd look into reentering if it holds and breaks above the resistance.