Strong Bullish Engulfing candle forming with today's price action on USDJPY. Price is currently testing the 38.2% extension level off of the March 22nd - March 28th - April 2nd move up after finding support/demand in-between the 50.0% - 61.8% March 22nd - March 28th retracement area.
With that said, retail trader sentiment is LONG at 2:1 and has been net long since the beginning of the year. Furthermore, dealer intermediaries have been net buying the pair while leveraged funds have been selling since week ending November 13th and that trend still persists. Therefore, sentiment points to continued price decline unless the USD makes a definitive move above 107.950. Therefore my current LONGS have very tight stops as I'll be looking to take whatever profits are on the table should the price action fail to break above the most recent high 107.005 high
With that said, retail trader sentiment is LONG at 2:1 and has been net long since the beginning of the year. Furthermore, dealer intermediaries have been net buying the pair while leveraged funds have been selling since week ending November 13th and that trend still persists. Therefore, sentiment points to continued price decline unless the USD makes a definitive move above 107.950. Therefore my current LONGS have very tight stops as I'll be looking to take whatever profits are on the table should the price action fail to break above the most recent high 107.005 high
Trade active:
+550 pips across 5 lots. Going to roll stop to trail behind price action at 1.5x the average true range, which would be 120 pips.