USDJPY profit taking at the resistance before bull move
This trade analysis is part of my diary. Please let me know if it was helful but also your suggestion for improvements
Price is approaching resistance levels around 114. levels. I expect price to return to 112.8 levels before continue its way up.
At 114 levels there is a resistance and weekly R1 pivot point. Stochastic is overbought and currently riding 21 EMA on 1H chart.
On daily chart price broke through 21 EMA and continue it's way up. For USDJPY round numbers are very important and profit taking might take place at the important resistance zone.
I would rather see price continue to 55EMA and finish Stochastic cycle but profit taking might take place before that.
It would be important to note bearish move would not be driven by bears but rather less bull in the market.
Agressive approach would be legging in into sell trade with target of 112.8.
I like to add to my portfolio another long position at 113. - 112.8 levels so I would be waiting for the pull back.
Price is approaching resistance levels around 114. levels. I expect price to return to 112.8 levels before continue its way up.
At 114 levels there is a resistance and weekly R1 pivot point. Stochastic is overbought and currently riding 21 EMA on 1H chart.
On daily chart price broke through 21 EMA and continue it's way up. For USDJPY round numbers are very important and profit taking might take place at the important resistance zone.
I would rather see price continue to 55EMA and finish Stochastic cycle but profit taking might take place before that.
It would be important to note bearish move would not be driven by bears but rather less bull in the market.
Agressive approach would be legging in into sell trade with target of 112.8.
I like to add to my portfolio another long position at 113. - 112.8 levels so I would be waiting for the pull back.