I have highlighted an area of support and resistance found on this pair which has been held and retested a few times on the 4H chart. With many scenarios that could play out, execute the best possible trade I would look for a breakout at the support zone, a retest at the support zone then enter after a confirmation of price action you use ( bear engulfing candle,...
The significant WS1 support pivot is under pressure on USDJPY and if this fails then the BEARS could push through and break the supporting trend line shown on the chart. This opens the way for a significant move south as there is little support under here. I've entered this market already at 106.28 with a 25 pip risk. 13:15 GMT sees ADP NOn-Farm Employment Change...
A very decent short position on the reversal of the support turned resistance of the the descending channel on the 4 hour. The EMA's showing bearish signals as extra confluence with also a strong bearish channel on the higher time frames. This will hopefully be a very good sell trade!
Let's see what happens during the week!
Still in a downtrend with several rejections of trendline, creating new lower highs, failing to make higher highs.
Perfect wick rejection of the 0.618, which lines up nicely with the 50MA, descending trendline and the resistance area.
Based off my confluences, I am currently selling UJ to 106.000 area.
It can potentially hit the 105.00 area as well but I'm happy to take my profits on 106.000 level to ensure good risk management has been taken based of the balance on my account. I don't want to overkill my trade incase the market decides to end the trend and climb back up.
- H Dott
We have seen a break of the previous support and looks likely to be turning into a resistance zone.
Looking for a pullback and a rejection of the support - turned - resistance before entering a short, entry likely to be around the 0.618 FIB