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USD/JPY Retreats to 103 - BOD Trade Idea

I believe USD/JPY could be setting up for a bullish swing in the near-term.

The 4H chart show a market that is neutral-slightly bullish since late January. In the previous 2 sessions, it has retreated from just above 104 to about 103 as we get started in the 4/7 US session. 


(USD/JPY 4H chart)

Buy-on-Dip Trade Idea:
The stochastic is below 20 and RSI around 40 - a combination I watch for when trying to buy into a prevailing trend. There is not strong prevailing uptrend yet in 2014,  but price action has been bullish since the second half of March. Going on this development, I am look at the 102.80-103 area as a buy zone.

Note that the buy zone is in a previous support/resistance area, which goes down to about 102.65. 

Below 102.50 the market looks more sideways instead of bullish, and a break below 102 takes away any bullish bias and might re-introduce a bearish one.

Wednesday's FOMC meeting minutes should have an impact on the USD/JPY. The market might be tentative ahead of the minutes, though I believe it remains bullish when price is above 102.50.