USDJPY looks like its bouncing back up after a severe downmove forming a nice channel. 4H Timeframe View:
It was able to pullback and even retest the 20MA in the 4H timeframe so it will be great if it touches the 50MA(yellow line) and hold above it for a confirmation of the short term uptrend.
Long: 111.342
Stop: 111
It might still pullback to test the 50MA on the 4H so its better to be safe to put the stop a few pips just below it
Target 1: 112.9
The 20DMA/50DMA even the 4H 200MA are converging on this area so its reasonable that it might have difficulties breaking through this level so I might take partial profits on this area just in case
Target 2: 113.8
If it doesn't get rejected on the level with a cluster of MAs then the next logical target will be the upper channel
Any feedbacks are appreciated!
Note
So far the 50MA 4H held up pretty well leaving a long wick after bouncing off it.
Its still possible it might retest it one more time but looks like a firm support is building up on this demand area
Trade closed: stop reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.