USDJPY has been an interesting pair to watch this year and here is another opportunity to take advantage of the volatility of this pair.
I will just be going into the technicals for this trade. If you want fundamental information visit www.investing.com they have great fundamentals with great breakdowns.
TECHNICALS
- The Market on Friday's close was on the level i identified as weekly support (109.300) looking at chart patterns from two months ago, we noticed that this level is extremely difficult to break and close below thus making it a level prone to reversals, and so far this has occurred.
-Daily Resistance (111.011) is our first target as this is the first level the market will face which could prove to be a little bit of a challenge as the market proceeds with its bull movement, so i would suggest profits are secured here.
-Resistance Region (111.774) is labelled this as the market can find itself caught in a brief consolidation between Daily Resistance and this level, we may encounter a retrace here as history has proven, although this shouldn't cause a big scare, keep your positions open but make sure profits have been locked before the market enters here.
-And our last target is Secondary Resistance (112.391) it should take near 2 weeks to play out so, patience will be key and your mental stability will be tested, in the past again the market does enjoy stalling here, once where are this high up we want to secured our profits and run.
Greed, Overconfidence and lack of patience will be tested in this trade, you will need to overcome greed when you notice that you are in a large profit, do not add more positions that you can not afford to lose, Overconfidence with this trade will make you want to enter positions with other currency pairs without doing the correct analysis, thus will cause you to make silly errors. And finally this trade will take time to play out properly, you will feel as if the market is going no where, that happens, the market is not always going to move, they may be long periods on consolidation but once it is broken strong movements will occur and you will wish you had stayed in the trade.
I will just be going into the technicals for this trade. If you want fundamental information visit www.investing.com they have great fundamentals with great breakdowns.
TECHNICALS
- The Market on Friday's close was on the level i identified as weekly support (109.300) looking at chart patterns from two months ago, we noticed that this level is extremely difficult to break and close below thus making it a level prone to reversals, and so far this has occurred.
-Daily Resistance (111.011) is our first target as this is the first level the market will face which could prove to be a little bit of a challenge as the market proceeds with its bull movement, so i would suggest profits are secured here.
-Resistance Region (111.774) is labelled this as the market can find itself caught in a brief consolidation between Daily Resistance and this level, we may encounter a retrace here as history has proven, although this shouldn't cause a big scare, keep your positions open but make sure profits have been locked before the market enters here.
-And our last target is Secondary Resistance (112.391) it should take near 2 weeks to play out so, patience will be key and your mental stability will be tested, in the past again the market does enjoy stalling here, once where are this high up we want to secured our profits and run.
Greed, Overconfidence and lack of patience will be tested in this trade, you will need to overcome greed when you notice that you are in a large profit, do not add more positions that you can not afford to lose, Overconfidence with this trade will make you want to enter positions with other currency pairs without doing the correct analysis, thus will cause you to make silly errors. And finally this trade will take time to play out properly, you will feel as if the market is going no where, that happens, the market is not always going to move, they may be long periods on consolidation but once it is broken strong movements will occur and you will wish you had stayed in the trade.