USDJPY Price Action Analysis – 6th August 2018
USDJPY made a Bearish move on the H4 chart. The pair made a new lower low on the chart by making a breakout. There is a strong level of Support nearby, thus the next Bearish move might not be that strong. However, space is good enough to attract the H4 chart traders on USDJPY to go short today if we see a breakout towards the downside. Let us have a look at the H4 USDJPY chart.
The price has been Bearish after an H4 Bearish candle. Then, there was a little correction. Afterwards, that strong Bearish move took place. Have a look at the last Bearish move. One of the candles made a breakout at the level of 111.380. If that level produces an H4 Bearish Engulfing Candle and later we get an H1 breakout at the level of 111.105, then the price would head towards the level of 110.710 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Stop Order: 111.105
- Stop Loss: 111.380
- Take Profit: 110.710
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
With USDJPY, we see that the H4 trend is Bearish. However, the Daily chart shows that the price is in range. It is always best to choose a chart, which has the same trend on the H4 and on the Daily chart. It is not always possible though. In that case, going with the H4 chart is a good idea since H4 chart most probably the chart, which is mostly traded by the big traders.
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