I posted several Short trade plans last week, mainly due to the bearish Stochastic Divergence on the Daily chart.
Initially, I thought the price would drop down to 55EMA, or even down to MPP. But it didn’t stop there, but still tanking as of now. I would say the price adjustments based on the Divergence is now over. Thus I should start looking for the Long opportunity with this pair.
Looking at the Daily Ichimoku chart (below) also suggest the possibility to bounce from the Clouds.
Another reason for me to expect the price bounce up is… USDJPY chart. Below is USDJPY Daily chart. The price is coming down to the hardcore support level, and I am thinking the possible bounce from this level.
However, looking at the price actions in Asian hours so far, it has been dropping like crazy, showing no sign of reversal. I cannot predict how far the price will go down. But here are the zones that I would look for the Long trades.
I will check the price action of Hourly & M15 from the current price down to 189.50 – 188.80 (BUY ZONE 1 – Support & Fib 61.8%) for the reversal price action. If the price keeps dropping, then the next BUY ZONE is the Double Bottom area (185.00 area).
In these 2 BUY ZONES, I will look for the price action, and try to Long.
As usual, please check the price action, before entering the trades.
This Long trades should be rather, Long-term Swing trades as my long-term bias is Bull.
YJ Baik – Forex.Today @ Tokyo