Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The Usdjpy currency pair is approaching resistance at the daily down trendline in the region of 82.30s. Of equal significance though, is the fact that this most recent push up effectively breached a shelf of resistance at 82.80. Depending on how the daily candle closes, it might present a good opportunity to go long. My trading strategy would be to go long at a retest of the broken shelf (81.80), after a bullish confirmation at that area. A 4-hour pullback could also be considered, though slightly more risky.
The profit targets I am considering are: current levels (82.30), at which point I would recommend moving stop losses to breakeven, and taking a shot at some weekly resistance as a second target. This resistance is at 83.00, just beyond the daily trendline. The 50% fibonacci retracement level, drawn on the daily chart is located at 83.16. A third target could be 84.30, depending on the bullish momentum.
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When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Gbpcad is looking quite interesting at daily range support: http://winnersedgetrading.com/technical-outlook-trading-opportunities-2/
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