I feel that USDJPY
will rise due to the presence of a symmetrical triangle, which means that the price action could break the triangle to either side. I noticed some bullish divergence
on the weekly timeframe
, which confirms my theory that UJ will be moving upwards. I would get into the trade once the price rises anywhere between the 109.647 to the 109.800 zone. My first TP level is at previous support zone
around the 110.522 level and I would exit my trade at that point to see if price will retest the support zone
before moving higher. 107.843 is where my stop loss will be located. I also have a pending order to be triggered to the downside as well, just in case price does decide to break support and create a new downtrend. For now I have pending orders just to play it safe and due to the nature of the symmetrical triangle because we do not know its intended direction for sure, and it could go either way. We also have some medium to high impact news that will be coming out tomorrow Feb. 1st, 2018 and we shall see what this pair has to offer as far as directional movement
. I am looking forward to Initial Jobless Claims news as well as ISM Manufacturing PMI news to drive this pair to the hills in the near future.