Direct from the desk of Dane Williams,
This is not your average forex broker email.
Over on the blog in today’s daily market analysis, I spoke about the way that USD/JPY has moved to the top of its daily channel, with plenty of bullish momentum behind it.
The USD/JPY daily chart (if you missed today’s analysis, then click the link above to check it out), shows price now above the horizontal support/resistance zone that we’ve been watching for weeks, as well as now poking through channel resistance.
All signs are pointing to the bulls being in control!
And it’s this bullish momentum that I want to take advantage of, seeing an opportunity for us to possibly get long.
I now want you to bring up an intraday, USD/JPY hourly chart.
Here’s an extract from today’s daily market analysis:
“The pair then gapped down to open the fresh week on Monday, but was immediately bid back to the highs where we now remain.
Channel resistance becomes the next hurdle, but I really do like the way that price gapped down into our higher time frame support/resistance zone and then was immediately bid.
It's a good sign for USD/JPY bulls.”
The USD/JPY hourly chart above, shows exactly what I was talking about there on the blog - The gap down to start the new week and then price moving straight back to swing highs.
It’s all there.
With price above both higher time frame, horizontal support/resistance and now also pushing through the channel, I like the idea of riding momentum and trading USD/JPY from the long side.
As my price action strategy dictates, I then identify an area of short term resistance that will be retested as support for a long entry. A pattern that’s already played out and has been marked by the grey box on the hourly chart above.
With that being your USD/JPY long entry, risk management is also fairly straightforward. The higher time frame, horizontal support/resistance zone is there just below, to place stops below.
If it goes below there, you know you’re wrong and It’s time to bail.
Do you have any questions about this setup or my analysis? Hit reply to this email and let me know. I read and get back to anyone in my Inner Circle who takes the time to chat.
Best of probabilities to you,