USDJPY pair shows the steady uptrend since yesterday.
I did worry about 120.40 line resistance. So I suggested about the short trade plan yesterday. I was wrong. The price has broke this resistance. So let’s look for Long opportunity for now. Fortunately there is no major resistance until 122.00 ish. (above that, there is DM4, DR2, WPP, MPP, Role-Reversal … tough area to break) Thus, short trade from 122.00 area would make sense, as suggested by Igor. (See his post, “USDJPY Trade plan” dated on Aug 28)
I think it is safe to assume though, the price will go up 122.00 area.
There are several ways to trade this up-trend. Using Price Action is one way (as Wayne explains during the session).
I would like to mention how to trade with Moving Averages.
For Swing Traders, you can long (and keep longing) as long as 21EMA (Orange line) is above 55EMA (Blue line), that is the same as MACD being above 0.00. Thus try to long from Higher Low.
For Spot Traders, you can long when
a) 21EMA > 55EMA and
b) Buy when 5/8 cross up (5 is Brown, 8 is Black), exit when 5/8 dead-cross.
There are another 90+ pips until 122.00.
So you should try to spot-trade LONG
if a) 21EMA > 55EMA and
b) 5/8 cross up for entry, 5/8 cross down for exit.
Of course, you can apply this method for other timeframes such as M15.
Below is the example of the Price Action trades… For you Info…
The same strategy can be applied to NZDJPY long trade… up to 81.00 ish.
YJ Baik – Forex.Today @ Tokyo