USDJPY is currently trading below the significant price structure 113.63 which was broken below last week. This break confirms a trend change in the USDJPY. A low is in place and we expect some reaction to this move down, a Lower High is expected for a confirmation of the bearish momentum. As we know 'Price does not travel in a straight line'.
The price for today's Long entry is 112.56 which will serve as a conveyor for buyers. If this move happens, this will be a short covering rally and we expect momentum to the upside. A break above 112.56, we will open a long position with a low risk Stop Loss; 112.30.
1st Target : 113.17
2nd Target : 113.70
Alternatively, if price failed to break higher than 112.56, and slide back below 112.30 we will continue to short every rally in USDJPY from a lower time-frame.
The price for today's Long entry is 112.56 which will serve as a conveyor for buyers. If this move happens, this will be a short covering rally and we expect momentum to the upside. A break above 112.56, we will open a long position with a low risk Stop Loss; 112.30.
1st Target : 113.17
2nd Target : 113.70
Alternatively, if price failed to break higher than 112.56, and slide back below 112.30 we will continue to short every rally in USDJPY from a lower time-frame.
The fair deal is to break even and eliminate the initial risk, if price continue upside we are good, if not a rollover below the long point 112.56 which will eventually close out our long position at Zero loss, will open a gap for more sellers to step in. The big price to the downside still remains, 112.30.