USDJPY
Price has been ranging between the 107 and 114 levels for some time now.
* Price is around support plus a buy signal has printed (doji, indicating indecision = bears may be out of steam failing to push price below support)
* The weekly timeframe indicates a buy, so does D1 and H4 when looking at the levels marked and how price is reacting
So I am opening a buy order at market price 108.880 with:
Stop loss below the lows @106.889 and
Take profit at resistance @ 113.314
**Important - this is an aggressive entry. A more conservative entry would be to wait for confirmation (bullish candle) which is currently forming and if completed as such would form a bullish engulfing buy signal
Don't bet the farm and always exercise healthy risk management
Trade closed manually:
Have a look at the 109.765 level being tested from the top and bottom in a few instances over time.
Yesterday's candle closed as a hammer at resistance (sell signal) and today's candle is bearish which may be confirmation for the hanging man signal to go short.
Last but not least, I added the 21 period ema - note how well this level was respected with the previous two candles pinning the MA.
The longer term trend is still UP when looking on the weekly timeframe so I would like to see the 109 level broken and tested as support before considering to open a new long position.
For now, closed manually banking 50 pips.
Yesterday's candle closed as a hammer at resistance (sell signal) and today's candle is bearish which may be confirmation for the hanging man signal to go short.
Last but not least, I added the 21 period ema - note how well this level was respected with the previous two candles pinning the MA.
The longer term trend is still UP when looking on the weekly timeframe so I would like to see the 109 level broken and tested as support before considering to open a new long position.
For now, closed manually banking 50 pips.