DAILY CHART
4-HOURLY CHART
1-HOURLY CHART
NOTE
#DXY is important for a primary major pair. Whatever the USD does will affect the primary pair.
SETUP
Not investment advice, just gut feeling. I could also rationalise this for long position. Remember; the 126 support is a tough one. And Bank of Japan may not want it broken, and could intervene.
- Trend: Following 4 consecutive Break-Out / Retests, hugging the 21 EMA tightly,
- S/R: USD/JPY has arrived at significant Support/Resistance Zone of 126 to 131.
- This zone happens to correspond with a swing point / accumulation zone in 2016. The pair has been trading above 131 since, and has only broken below 131 again in pas 2 weeks.
- #DXY Dollar Index has been overlaid. USD/JPY has been trading above DXY since 2016, meaning JPY has been a cheap component in the index.
4-HOURLY CHART
- Trend: Price is ranging for almost 2 week, in a rather large channel.
- S/R: Price has tested 126 and 131 a few times.
- Market Bias: Remains short.
- #DXY is still below USD/JPY on 4H Timeframe.
1-HOURLY CHART
- Trend: Appears up, with wild swings. Price Action angles of the down-waves are increasing, indicating stronger sell-pressure.
- S/R: As on the 4H-chart.
- #DXY remains below USD/JPY. #DXY and USD/JPY are diverging. No major buy-pressure on DXY.
NOTE
#DXY is important for a primary major pair. Whatever the USD does will affect the primary pair.
SETUP
- The market is short and ready to break 126
- Short-order at 130, stop at 132, first target 126, (first 2R profit)
- If it works out, the down-move will be fast. That's the main reason for going short here, and I want to be in it before it moves.
- By going short here, I can keep the stop tight. Once it moves, the stop would have to be wider.
Not investment advice, just gut feeling. I could also rationalise this for long position. Remember; the 126 support is a tough one. And Bank of Japan may not want it broken, and could intervene.