The Yen crosses sure have been interesting to trade and watch, especially over the past few days. I find that getting a grasp of the general direction on the usdjpy will often give clues regarding upcoming trading opportunities on the other , often more interesting yen crosses. It also acts as a guide for me when they are not moving as uniformly as they often do. I know we are almost at the end of the trading week, but I have noticed an interesting technical trade setup on the usdjpy. The daily chart below shows clearly, an important juncture at which the usdjpy has arrived. This is daily trying to confirm a bearish reversal by retesting the trendline that it broke through a few days ago. If I am correct, this could be the extension leg of the move downwards.
Price broke below the up trendline that stretches from a November 2002 low at 84.81. It then found support against a longer term trendline, marked by triple bottoms. This most recent subsequent bounce today see it retesting the back side up trendline. A careful examination will also reveal a 200 SMA at that same level. I will be looking for trade opportunities going into next week. As usual, I have suggestions on how to trade this. This is a very good setup for swing traders, and day traders alike. Since we have been very bearish, and this is a bearish reversal, I am inclined to be biased towards shorts. However, since the intraday charts are all in an uptrend, I will need to look for bearish reversals setting up on a 15 minute timeframe in order to confirm short entries.
If price does manage to break the resistance and hold firmly above, then I will simply continue taking long trade setups on the intraday charts. To confirm a bullish move, the trendline it is currently testing needs to be broken and give a fully closed candle above. I know that it is very easy to get trapped by blind spots, so I hope this article gives a heads up to those who are long, or are thinking of taking long positions at this time.
All The Best, and Successful Trading to You
Latest posts by admin (see all)
- How To Plan a Trade From Start to Finish - May 3, 2016
- How To Trade The Eur/Usd Right Now - April 29, 2016
- Eur/Usd Could Move Higher Based off of Support Pin Bar - February 19, 2016
Winner’s Edge Trading, as seen on: