Ian Coleman from First 4 Trading is focused on the potential risk/reward offered in USDJPY after the recent retracement in the dollar. The US Dollar Index continued its declines ahead of the Federal Reserve meeting scheduled for Wednesday. Falling to USD 96.61, an important support level, has triggered a reversal in two of the dollar majors. According to Ian, both USDCHF & USDJPY are beginning to form Reverse Head and Shoulders patterns. With USDJPY close to a DeMark exhaustion count, he suggests this trade pair offers the most opportunity this morning. He is looking to enter the trade at JPY 118.90 with a stop of JPY 118.30. A move through JPY 119.40 and Ian would look to move stop to entry. His target for the trade is JPY 120.00.

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