As we can see on the 4H timeframe the directional bias of USD/JPY is bullish. This structure has been creating higher highs and higher lows since last week. During this week, price has formed its way into a corrective structure where price has failed to make higher highs to continue the bullish momentum. However, we have not broken key levels to suggest a reversal to the downside so my outlook is still bullish. As a price action trader I focus on trading with the trend rather than anticipating a reversal, so I will be looking for price to break above the key level to confirm bullish sentiment is still in the market. However, in order for me to take this trade I will have to see price pullback and respect the key level before taking the trade to the upside targeting a 3R Trade.
Comment:
Price came down to the key level in the asian session, and failed to break the level with multiple wick rejections. This confirms to me that there is still bullish sentiment in the market and we're still just waiting for that break the upper level
Comment:
Price came and respected the key level in the London session and now continues to remain bullish