USDJPY Price Action Analysis – 6th July 2017

USDJPY has been bullish on the H4 chart. The price has kept moving to the North after having little pauses. It seems that the pair has been trapped within a Bullish channel. Moreover, the H4 chart shows that there is an H4 spinning top right at the support of the channel. This means eyeing on the pair to take a long entry might get us some green pips. Let us have a look at the H4-USDJPY chart…

The H4 chart clearly shows that the price has been uptrending. Look at the channel that I am talking about. The last H4 candle on the chart is a Spinning top. If the next H4 candle engulfs the Spinning top, then buying the pair might get us some green pips with good risk and reward ratio. Let us have a look at the summary of the trade…

• Buy Limit Order: 112.850
• Stop Loss Level: 112.000
• Take Profit Target: 113.800
• 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

Have a look at the horizontal line at 112.850. It was a level of resistance earlier. This means this is a Flip over support level as far as horizontal levels are concerned. There is a channel support as well as we see on the chart. When we get a level like this, which is a combination of Horizontal support/resistance and Channel or Trend line support/resistance, this is called “Dynamic support/resistance”.   In this case, it is called Dynamic support. A Dynamic support/resistance level normally works better than usual support/resistance.