USDJPY – BUY – 20th January 2021

USDJPY – BUY – 20th January 2021 (Closed)

Good evening team,

A nice technical setup here on the USDJPY.

USDJPY – Daily Charts

There has been a technical breakout and retest of a long term negative trend line resistance. Price action has been coiling up inside the falling wedge formation. We now see the potential for an impulsive move higher towards the +106. For now our shorter term targets can be found at 104.88 and 105.50.

USDJPY 4 Hour Charts

On the shorter term we can see a nice 5 wave structure higher, which suggest we will see an additional 5 waves from the pull back. There has also been a pennant breakout followed by a retest.

Trade Setup: BUY – Market Execution, current price 103.78, stop loss 103.08 and take profit target 105.50. 

Stop loss: 70 pips

Take profit: 172 pips

Keep in mind we are still active on a USDJPY position, therefore be cautious with the leverage used.

Trade Setup
BUY - Market Execution

Entry
103.78

Take Profit
105.50

Stop Loss
103.08