What to look for if buying USD/JPY 💹

Direct from the desk of Dane Williams,

This is not your average forex broker email.

Afternoon team,

I hope you enjoyed your weekend!

I’m an old school forex markets guy who loves to switch off from the markets and really get away from my screens over the weekend.

The fact some crypto traders now go all the way through the weekend is just crazy to me.

It might be fun for a bit, but mark my words - You will burn out!

Use the weekends to step away from your screens and chill.

You’ll thank me in the long run.

After doing an overall weekly market preview on the blog, it was USD/JPY retesting a confluence of support that meant it was identified as the market in play to start to the week.

As always, use those links to the blog to look at the higher time frame analysis and then come here to zoom in and look to actually trade around the support/resistance zones that we’ve already talked about.

Zoom in and now take a look at the intraday USD/JPY chart.

USD/JPY Hourly:

You can see that each time price has dropped down into the daily support/resistance zone, that it has been rejected.

Price is currently on its third test of the zone as support and to start the week, the bulls are looking like their taking control again.

As we’re above higher time frame support/resistance and starting to bounce, here are some things to look out for if you’re going to get long:

  • Pullbacks that print reversal patterns such as doji type candles

  • Short term resistance being retested as support.

When you see a combination of these two things, then you’re putting yourself in a position to get an optimal entry.

In terms of placing your stop loss, remember that the trade is only invalidated if price goes down through the higher time frame support zone.

While you can place a tight stop below an intraday swing low to try and make more money, this means you can be stopped out while the trade is technically still valid.

This is entirely up to you and comes down to your individual personality as a trader.

If you’d like to talk more about your individual trading personality and how this effects how you read my analysis, then simply hit reply to this email and get in touch.

I read and reply to everyone inside my Inner Circle who takes the time to chat.

Best of probabilities to you,