USDJPY Short Idea
Weekly Trend: Bearish
Daily Trend: Bearish
4hour Trend: Bearish
Price action on this pair has been choppy lately as it reacts around our 104.500 zone. We recently saw price action fall back below 104.500 where we now have identified two potential trade scenarios
Trade scenario 1: Price action continues bearish but first pulls back through the moving averages and forms structure. We can look for short opportunities once we have established a reversal and confirmed a lower high at either the 38.2% or 61.8% fib level. Target lower toward prior lows and negative fib levels.
Trade scenario 2: Price action goes bullish but because of how bearish this pair is overall we need to see a few key zones break first. I wouldn’t consider a long trade a “good risk” trade until we see a higher low form above our 4hour level at 105.000. We can then look to target higher toward key resistance levels.
Weekly Trend: Bearish
Daily Trend: Bearish
4hour Trend: Bearish
Price action on this pair has been choppy lately as it reacts around our 104.500 zone. We recently saw price action fall back below 104.500 where we now have identified two potential trade scenarios
Trade scenario 1: Price action continues bearish but first pulls back through the moving averages and forms structure. We can look for short opportunities once we have established a reversal and confirmed a lower high at either the 38.2% or 61.8% fib level. Target lower toward prior lows and negative fib levels.
Trade scenario 2: Price action goes bullish but because of how bearish this pair is overall we need to see a few key zones break first. I wouldn’t consider a long trade a “good risk” trade until we see a higher low form above our 4hour level at 105.000. We can then look to target higher toward key resistance levels.