Yesterday, I discuss about the Breakout strategy for this pair, with expectation to break down below the range.
Well, I was wrong and I was right. 🙂
I was wrong because the direction was incorrect – the price broke the ceiling, not the floor.
I was right in the sense that the breakout strategy worked beautifully. The price came down to Fibonacci 38.2% and Role-Reversal Support area. That was a textbook BUY ! I hope some of you took a shot!
Since it broke the resistance of 119.60, now I am a bull for this pair. Also, the market seems to be stable today, Shanghai index up, Nikkei index up. So I think USDJPY will enjoy a steady (maybe slow though) up trends.
Well, the procedure is the same as usual. Draw the horizontal line from the previous high, which could be potential buy zone.
However, I see Bearish Divergence on the Stochastic. So I am expecting the price may come down a little further. Thus take a fibonacci of the recent rise, and (as usual) Fib 38.2-61.8% should be a buy zone.
The target can be Fib 138.2% (120.70), or if you are aggressive, you can aim for DR2 (121.00 ish).
Hope this setup helps you build up your own trade plans.
YJ Baik – Forex.Today @ Tokyo