The USDJPY bull is on the loose – again! Traders who were expecting, anticipating and hoping for a bigger correction down to, for example the 87 level, were left empty handed.
The USDJPY bounced off the 618 Fib of the last move (87.90 price level) to the upside and it seems that nothing can and will stop this currency pair.
May of the year 2010 was the last time the USDJPY was valued at 95. That was 2010’s year high as well. Could the next level indeed be 95? OR 100? It sure could, so congratulations for the traders who are still in the buys!
But what is your trading plan if you have not yet (re)entered in this huge bull market?
Once in a trend, the USDJPY typically only makes very small retraces. The maximum pull back is to a 382 Fib of the last swing high swing low, but even that is sometimes tough for the USDJPY to achieve, as the power trend pushes the pair up earlier.
Therefore, my trading plan on the USDJPY is focused on waiting for 1 hour consolidation zones to appear and then taking the break out of the corrective bull flag or triangle to the upside.
Not only the USDJPY is moving up violently. So are the crosses on the EURJPY, GBPJPY, AUDJPY and NZDJPY. I will be applying similar tactics to especially NZDJPY and EURJPY as the Kiwi and Euro seem to be relatively the strongest.
What is your opinion of the USDJPY? Let us know in the comment section!
The GBPUSD made the down move as outlined in my trading plan of yesterday and I managed to catch some nice pips on that trade! I hope you were able to use that plan to your advantage as well 🙂
Let’s revisit that setup. First of all, the Cable’s day candle was impulsive and bearish, and on the 1 hour chart a nice bear flag had formed during the Asian session. Before dropping down, the GU made a small move up back to the previous bottom and that is where I sold my 2nd position at 1.6030 (1st trade at 1.5996).
Price action made a rejection 1 hour candle at around that level and the GU reversed down strongly.
The EURUSD showed a whole different story today! The Euro gained aggressively in the opening hours of the London session and is not showing any signs of moving down. I am looking for a bull flag corrective pattern after which I would buy any 1 hour break out. The target for that trade is 1.3480. The 1.3420 level could give some headache as there are major Fibonacci target levels at that price zone.
Another future setup I will be monitoring closely is the GBPAUD. The currency pair made a move up today but the bears stepped in and forced the pair downwards. At the moment we can see a huge wick on the day chart, which translate to engulfing twins on the 4 hour chart. I am contemplating a short close to the previous the bottoms, which acted as support and now could act as resistance. A selling price of 1.5200, and the stop loss level is at 1.5257, is what I will be looking for at tomorrow’s London session. The GBPNZD seems to have the same potential when looking at the day and 4 hour charts.
Last but not least, don’t forget to follow us on twitter (@Winnersedgetrad) for all the best Forex predictions!
[column size=”1-2″ last=”0″ style=”1″]
[column size=”1-2″ last=”1″ style=”2″]
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: