USDJPY Trade Setup (Jan 28)

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

2016-01-28_13-26-55-UJ1-1024x814

 

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

2016-01-28_13-28-14-UJ2

(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.

2016-01-28_13-30-07-UJ3-1024x751

 

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

 

 

YJ Baik – Forex.Today @ Tokyo