FOREX Chart Of The Day: USDJPY Trend Trade Idea
Will the #USDJPY trend continue?
The recent USD strength has seen the trend remain bullish on the major #forex pair.
But where is the best place to buy the pair?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will take a look at USD/JPY as there is a potential long opportunity forming.
If we look at USD/JPY and the overall weekly timeframe, we can see that the prices recently tested these lows, around 103, and has continued to reject that level even up until last week when we had a nice bullish engulfing candle.
In the strength and weakness analysis, we identified that the US Dollar was gaining some strength, and we’re looking for the reversal in the US Dollar weakness to gain some significant strength.
So, looking at the USD/JPY prices, we can see that last week, USD/JPY had that great move. As we said, the weekly candle was a bullish candlestick, and the price started to break to the upside.
What happened was that the price has come back down and retested these structure lows, through here. If we look left, we can see that the price gave us a little bit of a false break out of those lows where we had a close below, and then a close back within. Then, what happened next is that the price moved to the upside and created this nice little consolidation pattern and then we’ve recently broken to the upside.
That suggests that the price is now starting to move back within that trend, potentially. So, I want to be looking for long opportunities. Potentially, down around this area, here.
If I go into the 30-minute timeframe, the level, through here, at 103.86 was the most traded level within this area. We’ve had a nice consolidation pattern through here. The markets broke out of that consolidation to the upside, which means buyers won the battle in this consolidation.
I’m expecting the market to come back down into this 103.86 level and react to the upside.
It’s very similar to what we saw on EUR/JPY when we looked at this area, through here. We said the price would break, head towards this 120.665, and move to the downside. It’s now breaking for the weekly point of control and could easily use that as a retested level.
We’re looking for the same here on USD/JPY; we have this consolidation pattern, and the price has broken to the upside. If we’re expecting the trend to continue, I expect the most tested level of 103.86 to act as support and see the price move to the upside.
Thanks for watching. I’ll speak to you soon.
The USD/JPY has good potential for the week to come. If you’re still on the fence about buying USD/JPY, you can give it a try at no-risk with a free demo trading account from Blueberry Markets by clicking here.
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