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.