USDJPY – Position UPDATE
The descending channel formation is still in play. The correction was a lot deeper than we first anticipated. A stronger USDJPY will also suggest weaker gold prices. We have updated our entry points below.
Trade Setup: BUY STOP: Entry point 104.20, stop loss 103.60 and take profit left open (targets 105.80+)
Stop loss: 60 pips
Take profit: 160+
Good evening team,
Great run so far this week. This evening we are taking a look at the USDJPY.
The pair had a huge impulsive rally over the past week, followed by a corrective structure lower. We are now looking to buy the breakout of a potential bull flag structure.
USDJPY – 4 Hour Charts
There is a major support zone around the 105 area. There is a falling channel formation, also known as a bull flag structure. We are now positioning waiting for the breakout.
There is also a possible inverted head and shoulders formation in play, however, this is not the most aesthetic looking H&S formation I have seen. There is a crucial level the USDJPY needs to break through at the 105.60 level. If we clear this zone we should be in for a large move higher.
Trade Setup: BUY Stop: Entry point: 105:30, stop loss 104.80 and take profit left open, targets can be found at 106.40 and 107.00
Stop loss: 50 pips
Take profit: 110-170
Once the market gets into a 20-30 pip profit, move SL to open price. There will not be an alert to move the SL, please manage risk accordingly.