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.   🙂

2015-09-09_12-52-46-UJ1

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.

Now what?

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.

2015-09-09_12-58-22-UJ2

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.

 

Happy Tradin’

 

YJ Baik – Forex.Today @ Tokyo

 

 

 

 

 

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