USDJPY: Bullish Divergence as Buy Signal

The bearish divergence gave us an amazing trend reversal signal. After the breakout, we saw the downward movement. This week, the market will be able to give us a possible buy opportunity.

Probably, we will get a bullish divergence. Look at the price and MACD histogram. We just need to get the close price of the 4H candle not far from the current prices or higher, and the bullish divergence will be confirmed. RSI reached the oversold zone, and it confirms the price reversal. MACD histogram is going to confirm the price reversal and a possible upward movement as well.

How to trade? It will be better to wait for a new local swing high and use it to draw the downtrend line. After that, we should wait for the breakout above this downtrend line. It will be a signal confirming the upward movement. Stop orders must be placed below the local swing low. If the price continues the downward movement, the next reversal zone will be between 108.43 and 108.25 levels.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.