USDJPY made a strong bearish move yesterday. The pair produced two consecutive bearish candles on the daily chart. On the H4 chart, the price has had a correction. The price seems to have found its resistance at the 38.2% Fibonacci level. If the level produces a bearish reversal candle, the sellers may go short below yesterday’s lowest low. Let us have a look at the H4-USDJPY chart. This trade idea was generated by our powerful Elite Swing Trader System on an H4 time frame.

The chart shows that the price after being bearish found its support at the level of 110.360. The level produced two consecutive bullish candles. The level of 110.975 has come into play and held the price as resistance. This is the 38.2% Fibonacci retracement level as well. If it ends up producing a bearish reversal candle, the sellers may trigger a short entry below the level of 110.360. Let us have a look at the summary of the trade...

• Sell Limit:  112.258
• Stop Loss: Above 110.975
• Take Profit: 110.366

If the price does not make a breakout today, the trade setup is not valid for tomorrow on the H4 chart. Traders are to wait for the daily candle to close below the level of support then. It means they have to wait to get a daily bearish engulfing candle. It means that it would be an entry on the daily chart. Stop-loss level remains at the same level ( signal candle’s lowest low) but take profit level may be shifted down at the level of 108.330. Let us wait to find out what happens in the end.   We wish you good luck and good profit for this trade idea. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then Click here to learn more about the Price Action Society.