This analysis focuses on a potential breakout and
subsequent continuation. Looking at price action
we can see that the support from March to
August, 2018, is still intact - however, as is always the case
with it depends on where you connect the points,
thus, it is always slightly subjective, hence, one could argue
that the first higher low was made in May, 2018 and the
50SMA would even support this. However, assuming price
were to rally higher from current levels, I adjusted the
to match with the low of August, 2018 to use
it as a 'better' visual reference - I mention this in case someone
were to point it out, and also to indicate that I am aware of the
subjective nature of .
Nonetheless, the 110.00 level is interesting and significant,
as already mentioned in the text box in the chart, it is
an area of as well as the
cross over level of the 50 & 200SMA. Hence, if price were
to drop and close below this level the next likely target
would be the 108.00 level and probably lower. Though
for now it can be regarded as firm and tested support.
Between the 108.112 and 113.176 level I have depicted a
potential pattern. If price manages to close
above the 113.176 level above we could finally see price
reach toward the 114.70/80 level, which is the target
of the pattern.
This market should continue to choppy especially with the
FOMC interest rate decision this coming Wednesday,
hence, it would be wise to wait until after to enter a buy
and hold trade with USD/JPY .
Trade long setup ( RvR ratio 3.36)
Entry: Conservative at 112.50
Aggressive at 112.35
As always, scale out your profits and adjust your stop/loss
to suit personal risk management profile.