The USDJPY has corrected from its horizontal resistance as visible in this D1 chart.
This currency pair is now approaching its horizontal support level from where we expect to see another reversal as the USDJPY has been confined to a tight trading range and there are currently no pressures to breakout or breakdown from its current chart pattern.
MACD has shown improvement and points to an absence of extreme bearish pressures to drive this currency pair lower. The histogram has gaped away from its moving average which remains in bullish territory and we expect this gap to be closed during the next move higher. RSI is trading in oversold territory and a breakout should initiate the minor rally.
We recommend a long position at 97.00 with a potential second entry level at 95.75. We also recommend a stop sell order at 96.25 with a take profit target of 95.75 in order to hedge our initial long position and before adding new long positions.
Traders who wish to exit this trade at a loss are advised to place their stop loss order at 95.75. We will not use a stop loss order and execute this trade as recommended. Place your take profit target at 99.00.
Here are the reasons why we call the USDJPY currency pair higher
This currency pair is now approaching its horizontal support level from where we expect to see another reversal as the USDJPY has been confined to a tight trading range and there are currently no pressures to breakout or breakdown from its current chart pattern.
MACD has shown improvement and points to an absence of extreme bearish pressures to drive this currency pair lower. The histogram has gaped away from its moving average which remains in bullish territory and we expect this gap to be closed during the next move higher. RSI is trading in oversold territory and a breakout should initiate the minor rally.
We recommend a long position at 97.00 with a potential second entry level at 95.75. We also recommend a stop sell order at 96.25 with a take profit target of 95.75 in order to hedge our initial long position and before adding new long positions.
Traders who wish to exit this trade at a loss are advised to place their stop loss order at 95.75. We will not use a stop loss order and execute this trade as recommended. Place your take profit target at 99.00.
Here are the reasons why we call the USDJPY currency pair higher
- The USDJPY currency pair has corrected from its horizontal resistance level and is now approaching its horizontal support zone
- MACD indicates the absence of bearish pressures and the histogram has gaped away from its moving average which expect to reverse
- RSI is trading in oversold territory and a breakout should initiate the move higher
- Profit taking after a decent move lower in order to realize trading profits
- New long positions by institutional swing traders
0 comments:
Post a Comment
No SPAM Please.. Thanks :)