USDJPYpair is still bullish, riding 21EMA on the Daily chart.
However, since I see the bearish divergence on Stochastic, I am a short-term bear with this pair. I am assuming the price may come down to 55EMA zone. (123.70 ish)
Even on M30 chart, I see another bearish divergence. (below)
For the entry, I suggest you use M15 chart (below), and wait for Lower-Low, that is to see the break of the support (124.25). Once you see the Lower Low, then Short from the next Lower High, possibly from the same 124.25 area. SL should be at 124.60. TP is 123.70. So if the entry is 124.25, Risk Reward ratio is 35:55. Well, OK but not ideal.
What you could do though, is to change the support line up to 124.365, and follow the same breakout strategy. Then your entry should be a bit higher. This support is also Daily Central Pivot (DPP), as well as Weekly Central Pivot (WPP) points. So actually this breakout may be better, in fact.
This could be a nice London open trade.
Anyway, it will be a thin market. So get ready for the sudden unexpected move. If the price moves up and break the ceiling (against our plan), you know what to do right? Yes, another breakout strategy.
Stay small, stay humble… and Happy Tradin’
YJ Baik – Forex.Today @ Tokyo