Spotted a potential LONG opportunity for USDJPY based on the following reasons:
1. Price crossed the 20 SMA from below and although the long green candle closed just above the 20 SMA, a bit smaller but also a strong green candle closed above the 20 SMA.
2. Price is now approaching to retest the 20 SMA which coincides with the 38.2 Fibonacci level which shows a strong support zone around 110.650 to 110.200 (50.0 Fibonacci level).
3. Since the 38.2 level coincides with the 20 SMA, price would probably stop the retracement at around 110.650 area and continue to shoot up.
Will enter this trade with 85-pip stop loss, basing on the size of the green candle which closed above the 20 SMA as this serves as the turning point/confirmation for the upward trend.
Initial TP is at 111.800 for 1:2 RRR and this is also the immediate resistance level spotted on the chart.
*This analysis is based on my own views and understanding of the Forex market. I am just a newbie in Forex trading. 4 months to be exact. So please practice due diligence and do your own analysis of the market for comparison.*
1. Price crossed the 20 SMA from below and although the long green candle closed just above the 20 SMA, a bit smaller but also a strong green candle closed above the 20 SMA.
2. Price is now approaching to retest the 20 SMA which coincides with the 38.2 Fibonacci level which shows a strong support zone around 110.650 to 110.200 (50.0 Fibonacci level).
3. Since the 38.2 level coincides with the 20 SMA, price would probably stop the retracement at around 110.650 area and continue to shoot up.
Will enter this trade with 85-pip stop loss, basing on the size of the green candle which closed above the 20 SMA as this serves as the turning point/confirmation for the upward trend.
Initial TP is at 111.800 for 1:2 RRR and this is also the immediate resistance level spotted on the chart.
*This analysis is based on my own views and understanding of the Forex market. I am just a newbie in Forex trading. 4 months to be exact. So please practice due diligence and do your own analysis of the market for comparison.*