Good afternoon guys,
A nice set up with a low risk high reward!
Taking a looking at the USDJPY it has been rejected from a key trend line and previous support which is now acting as resistance.
The FED are continuing their money printing regime, this means trillions more USD in circulation which essentially will weaken the currency and support asset prices.
USDJPY – 4 Hour Charts
Trade setup: SELL Market Order – Current price 106.60, stop loss 106.95, take profit 105.40.
Stop loss 35 pips
Take profit: 120 pips
Keep in mind:
If we get a break of this trend line we will look to close out our short position as the inverted head and shoulders formation will push the price higher.
If there is a break of the trend line you can look to go long on the pair.