USDJPY - Waiting on two key levels.
Updated
Hello everyone,
Hope you’re having a great day!
I wanted to share some of my thoughts about UJ, specifically a potential sell setup.
As we all know, the price has been in a deeper pullback (Weekly/Daily) for a while now. However, starting from last week, there has been a local bearish impulse, resulting in a drop from 137.88 to 129.66, before taking a small breather.
What’s interesting here is that we can see a small degree correction that may reach the two levels (OBs) highlighted on the chart. Once either of them is reached, we’ll be waiting for a crossover on the MACD on the 4H TF. Until then, we will be cautious and stay away from any trades.
There’s also a third level (FVG) that may be touched, but in my opinion, it will take some time before that happens if we don’t get a move to the downside before that. Our first target will be the blue area (OB) highlighted on the chart, which has a good chance of breaking the low located at 129.66
We will keep you updated on any changes we see on the chart. In the meantime, please trade with care and stay safe!
Hope you’re having a great day!
I wanted to share some of my thoughts about UJ, specifically a potential sell setup.
As we all know, the price has been in a deeper pullback (Weekly/Daily) for a while now. However, starting from last week, there has been a local bearish impulse, resulting in a drop from 137.88 to 129.66, before taking a small breather.
What’s interesting here is that we can see a small degree correction that may reach the two levels (OBs) highlighted on the chart. Once either of them is reached, we’ll be waiting for a crossover on the MACD on the 4H TF. Until then, we will be cautious and stay away from any trades.
There’s also a third level (FVG) that may be touched, but in my opinion, it will take some time before that happens if we don’t get a move to the downside before that. Our first target will be the blue area (OB) highlighted on the chart, which has a good chance of breaking the low located at 129.66
We will keep you updated on any changes we see on the chart. In the meantime, please trade with care and stay safe!
Note
The price reached the first reaction area but no signs of a sell setup yet. We might continue to go up from here towards the second area on the chart. Another possibility is that the market will start to correct from here and go a bit lower before hitting the level we seek.
Watch this space for future updates. Cheers!
Note
Quick update:The price is starting to get messy. We will let it break the top/bottom of this structure and see afterwards where we at. We might continue crawling up towards the second area highlighted above but remains to be seen.
For the moment no setups. We will keep updating you guys along the way so, keep an eye out.
Trade active
Sell setup: We started to make a small drop in the 15 min TF from the second reaction zone and we broke out of the TL making a small correction underneath. Keep in mind this is a risky trade so we will risk only 0.25% of our account balance. Entry: 132.86
SL: 133.2
TP: 130.53
R:R 1-6
Risk: 0.25%
Trade closed: stop reached
-0.25% SL reached, but sell setups are still valid as the price is still in the second reaction zone. Considering it is Friday we will be looking again for sells on Monday.Happy weekend everyone.
Note
Nice level to look for sell setups.The second zone held the price quite well and has started to fall since then. Right now we had a TLBO and a pullback and we are looking at 131.5 area as a first target.
Note
If you took the sell in the morning take partial profits or put it to break even.We hit our first target and now we have to look at 2 possibilities:
1. If you see the price ranging then there is a good possibility to go for one more drop towards the second blue area.
2. If we get an bullish impulse followed by a correction then we can go up again.
Trade safe!
Note
Great news – if you held onto that trade, you’re probably seeing some sweet profits right about now! But listen, I don’t want you to get too greedy and miss out on potential gains, so let’s consider taking some profits off the table. There’s a chance we could see some consolidation around this area, so it’s always better to be safe than sorry.We hit our first target, which is awesome, but now we’re waiting for the price action to give us some clues about what’s next. My gut tells me we’ll see a pullback soon – maybe even to the trendline – before the price breaks the low. But hey, anything could happen, right? If we see a bullish impulse that breaks the trendline, followed by a small correction, then we might just be heading for even more upside.
Remember to trade with care!
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