USDJPY has been stuck at 21EMA & Role Reversal Resistance level on Daily Chart.  Stochastic is over 75%, though it has’t crossed yet.



An interesting thing is, I see Bearish Divergence on H4 chart.  Thus I cannot help considering to short this pair.


(One concern is … the reason for this Divergence may simply be, because everyone is waiting for BOJ Monetary Policy Statement tomorrow)


The entry for this short trade will be…

a) sell from the next “Lower High”.  If the price makes High High, then this entry will be invalid.
b) Wait for Lower Low (Break of Prev Low), and sell from the retest.



However… you may simply look for other non YEN pairs to trade, because of BOJ decision tomorrow…



YJ Baik – Forex.Today @ Tokyo







3 thoughts on “USDJPY Trade Setup (Jan 28)”

  1. Charles Bidner says:

    Hi YJ, I opened the wrong chart when looking at this post, was trying to piece it together until I realised wrong chart. DOH! However on the chart I was looking at, NZDUSD, I noticed something I would share if I could, bounce it off you so to speak. Weekly chart, the pair is retracing back to a cluster of possible resistance, I.E. 50% fib retracement, 21 SMA, 8 SMA and strong long term Support/Resistance level of around 0.66030. I will watch this over the next week or 2, what do you think?

  2. Joao Pascoal says:

    Hello YJ Great study waite for tonigth BOJ.
    in today section Wayne say no QE for the momment so there for JPY get strong
    Thanks All the best
    Joao Pascoal

  3. Ryan Gandalf van Jaarsveld says:

    Thanks YJ!

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