I do believe that USDJPY is going to go up based on some divergence on the D1 timeframe. Right now price is retracing from the 50% fibonacci level which tells me that it is likely to continue upwards after pulling back. Strong pin bar with bearish exhausted to be noted that happened around 9am this morning right at the 107.100 area. Price looks like it wants to create a new trend as it is beginning to break previous highs. Strong support is being manifested at current price levels and this could mean more bullish momentum for the USDJPY. News may push the price higher in a couple of hours but be careful of spikes on high and medium impact news. I can see bullish divergence on the 1hour timeframe and I am waiting for a candlestick pattern to complete and being patient before entering a long position on this pair. I will be interested in getting in this trade only when the current candle closes and if it closes above the 107.250 area. Stops should be catered to your individual trading plan. This is a swing trade and my target is at least 50 pips. Happy trading!
Disclosure: *Trading foreign exchange carries a high level of risk. Trading is not for everyone and losses could easily exceed investment capital. Results are not typical. Use proper risk management and smaller lot sizes to protect accounts.
