How to trade this plan
1. Support and resistance zones shown in green and pink. Bulls buy at support and bears sell at resistance.
2. Keep in mind that when price breaks through support the level will be tested in future as resistance – this is called role reversal.
3. Market direction indicated by 21 and 55. Take note of where the 21 is in relation to the 55 and where price is in relation to the 21. Also take note of the width between the two moving averages. If price is below the 21 you may consider looking for selling opportunities. If the 21 is dynamic resistance then if price falls from the 21 it predicts a lower low – the opposite applies when the 21 is dynamic support. If the 55 is dynamic resistance then if price falls from the 55 it predicts a double bottom – the opposite applies when the 55 is dynamic support.
4. Direction of price is indicated by 5 and 8 MA’s and stochastic cycles. Remember that when you line up higher and lower time frames, price is going in the same direction. The goal is to line up market and price while using support and resistance as your leading indicator.
5. Pay attention to reversal patterns on higher time frames when in a trending market – a reversal pattern could mean the end of a trend. Keep in mind that a reversal pattern that is not at support or resistance is meaningless.
6. Pay attention to reversal patterns on lower time frames when confirming your entry and if you want additional confirmation wait for a 5 8 cross on M5 or M1 before entering your trade. Remember – we enter on the second chance on the 5 minute chart.
7. I have added a summary under the H1 chart indicating observations and trade plan.

a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
c. Watch Wayne’s webinar daily at 13:30 SAST or catch the recording on the Forex.Today Youtube Channel


Price has broken through the resistance trend line that has been in play since 18 December 2015. Next visible resistance is at MR1 and then MR2. With price having come off MM2 the bull target is MM4/ MR2. Continued USD strength could see continued Yen weakness so it is advisable to keep a close eye on the US Dollar and data out of America this week.


Price is approaching WM4. Support is identified in the Fib Zone. Notice that we broke out of the resistance trend line - also notice where the 61.8% crosses that line - should we see Yen strength return to the market in the near future and price arrives here, keep an eye on lower time frame charts for a possible buying opportunity.


Price has broken through the daily Bull profit target and is continuing it's path up. We are currently at resistance with support highlighted below in green. Take note of the 21 and 55 EMA's - bullish market. Should Yen strengthen then look for buying opportunities at the 21 EMA or in the Fib Zone. Keep an eye on the other Yen pairs to identify overall Yen weakness.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.