USDJPY → Drop to 144.000!? Or Fly back to 152.000? Let's Answer.
USDJPY fell from the double top as predicted in last week's analysis, hitting my take profits all the way down to 147.120. Will there be more downside or are we ripe for a rip back to 152.000?
How do we trade this? 🤔
This analysis shows us three clean support areas: 146.000 (Bull Channel Support), 145.000 (Previous High), and 144.000 (200EMA). It's reasonable to zoom into small timeframes and look for short scalp setups down to those levels. Since the macro trend is bullish, I would be careful to hold any shorts now that the gap from 152.000 has closed the majority of the way. The RSI is still below the moving average and has *some* room to fall, supporting the short-term bear bias.
Long-term, look to get long! We'll need a strong show of support with a bull signal bar and confirmation candle closing on or near its high and for the RSI to head upward breaking above the Moving Average.
💡 Trade Ideas 💡
Short Entry: 146.850
🟥 Stop Loss: 150.000
✅ Take Profit: 143.700
⚖️ Risk/Reward Ratio: 1:1
Long Entry: 145.500
🟥 Stop Loss: 143.200
✅ Take Profit: 150.100
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long.
2. Double Top Reversal Signal. Still Gaps to Fill.
3. Wait for Support at Channel Support, Previous High, or 200EMA.
4. Previous Channel High of 145.000 Final Target.
5. RSI at 35.00, below Moving Average. Supports Short-term Short, Long-Term Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
How do we trade this? 🤔
This analysis shows us three clean support areas: 146.000 (Bull Channel Support), 145.000 (Previous High), and 144.000 (200EMA). It's reasonable to zoom into small timeframes and look for short scalp setups down to those levels. Since the macro trend is bullish, I would be careful to hold any shorts now that the gap from 152.000 has closed the majority of the way. The RSI is still below the moving average and has *some* room to fall, supporting the short-term bear bias.
Long-term, look to get long! We'll need a strong show of support with a bull signal bar and confirmation candle closing on or near its high and for the RSI to head upward breaking above the Moving Average.
💡 Trade Ideas 💡
Short Entry: 146.850
🟥 Stop Loss: 150.000
✅ Take Profit: 143.700
⚖️ Risk/Reward Ratio: 1:1
Long Entry: 145.500
🟥 Stop Loss: 143.200
✅ Take Profit: 150.100
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long.
2. Double Top Reversal Signal. Still Gaps to Fill.
3. Wait for Support at Channel Support, Previous High, or 200EMA.
4. Previous Channel High of 145.000 Final Target.
5. RSI at 35.00, below Moving Average. Supports Short-term Short, Long-Term Long.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
-Joe Dean
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
Related Ideas
We now need to wait and see if we get a reversal at this level. A bull signal candle and confirmation or any type reversal pattern.
More updates to come as they unfold!