After a big drop yesterday, it is very hard to setup the trade plan today.
Looking at H4 chart below, it looks still very bearish, the price being well under 21 EMA (Orange line). However, based on the steady Nikkei Index (up today), I think the price should go up a bit, at least up to 21 EMA. From that point, following a pure technical, I should sell. But we will see…
So for today, I will look for Long trade up to 4Hour 21 EMA. It looks little, but hey, this is H4 chart and this is the Beast. We are still talking about another 100 pips move!! 🙂
Currently on M5 chart (below), the price seems to be supported by 183.65 level. A year ago, when I was more “gambling with FX”, I would long from here. But hey, we don’t see any confirmation of the up move. So to be conservative, let’s wait for the break of the previous high (blue line on the chart – 184.220 level). After we confirm the break of the previous high, we should long from the next higher low.
If however, the price breaks the current support and drop, you could short from the next lower high. This Short trade would be also valid if you are bear.
I will, however, just stick to Bull today.
Hope this setup will help you build up your own.
YJ Baik – Forex.Today @ Tokyo