Having the USD index breaking a daily supply level, we might expect price to continue a bit higher, so I'm taking a look at the relevant demand zones in the USDJPY pair as we could have an opportunity to enter the uptrend. On the 30min chart, we have a demand level between 113.850 - 114.000, which is also a structure level (support) on the 4H timeframe and very close to a 4H demand level, so might see a bounce here.
Although everything looks bullish at this point, we have RSI divergence on the 4H chart and daily chart, so I feel a little retracement is about to come, so I want to take advantage of this and get a few pips out of this move. Now the question is, when and where is it going to happen? (if it even does). Well, that's when the supply levels on the 30min chart comes into play, so I'm interested in taking a short position for a small profit in one of the two supply levels above current price. Both seem good to me, but if we are interested in profit margin, the one that is between 114.920 - 114.985 seems to be the best. Not only this, but if we measure a fibonacci retracement from the last swings down, we have a conluence at the beginning of that level, so this increases the probability of this level working out.
Let's see what happens next week and best of luck for everyone!
Although everything looks bullish at this point, we have RSI divergence on the 4H chart and daily chart, so I feel a little retracement is about to come, so I want to take advantage of this and get a few pips out of this move. Now the question is, when and where is it going to happen? (if it even does). Well, that's when the supply levels on the 30min chart comes into play, so I'm interested in taking a short position for a small profit in one of the two supply levels above current price. Both seem good to me, but if we are interested in profit margin, the one that is between 114.920 - 114.985 seems to be the best. Not only this, but if we measure a fibonacci retracement from the last swings down, we have a conluence at the beginning of that level, so this increases the probability of this level working out.
Let's see what happens next week and best of luck for everyone!