Looking at the price action and recent daily trade action for USDJPY it appears we may have a much stronger reason for a Short opportunity. Since mid-october USDJPY is on the verge of completing what appears to be a very steep ABCD Structure, the completion of this pattern lines up with the remaining S/R Channel that this pair was trading in during the first half of 2015.
Sell Limit 123.50 - or Manual Entry based on preference
Stop Loss 125.50
Take Profit 120.20
- Look for not only Price Action around this level, but also a Daily Candle close to help support this trade.
- Trade would be invalidated if daily candle closes above the blue resistance line drawn.
- Keep in mind that overall USDJPY is still technically in an uptrend so make sure to use the previous two points to your advantage.
- This is the only USD pair I'm seeing this kind of opportunity on so it is likely not to be related to the US Dollar like the NFP moves of Friday were.
Please do your own analysis before entering a trade and feel free to comment, "like" or follow. If there is a pair or time frame you would like me to take a look at, I would be more than happy to, just send me a PM with the details.