My macro bias for USDJPY is bearish. However, I opened a long position today.
Reasons for a long trade:
Weekly chart:
1) Both MACD and RSI are in the bear territory, however, both MACD and RSI lines are starting to cross and move to the upside.
2) The price has been moving sideways for weeks, however, weekly candle has been forming higher low since late April (subtle move).
3) There is a major support line at 140.50 area and weekly EMA200 is also sitting right below it.
Although the price has been moving to the downside, it will require strong momentum to pierce through the major support zone that has been holding since July 2023.
Daily chart:
1) EMA9 > EMA14 > EMA 21 - bullish trend
2) Yesterday's daily candle retested EMA 9/14/21 and closed above all of them.
3) MACD has entered the bull zone.
4) RSI has entered the bull zone.
5) There is an unmitigated fair value gap in the Fib 0.618-0.786 area. (see blue rectangular box in the chart).
As I said above, it will take strong momentum for the price to break below the major support line. It makes sense for the price to retrace to the unmitigated fair value gap area to take out all the liquidity to fuel the momentum to the downside.
My trade setup is below:
Entry: 145 Stop/Loss: 144.25 (just under yesterday's candle wick)Target: 147.12
Risk:Rewards 1:1.78
Reasons for a long trade:
Weekly chart:
1) Both MACD and RSI are in the bear territory, however, both MACD and RSI lines are starting to cross and move to the upside.
2) The price has been moving sideways for weeks, however, weekly candle has been forming higher low since late April (subtle move).
3) There is a major support line at 140.50 area and weekly EMA200 is also sitting right below it.
Although the price has been moving to the downside, it will require strong momentum to pierce through the major support zone that has been holding since July 2023.
Daily chart:
1) EMA9 > EMA14 > EMA 21 - bullish trend
2) Yesterday's daily candle retested EMA 9/14/21 and closed above all of them.
3) MACD has entered the bull zone.
4) RSI has entered the bull zone.
5) There is an unmitigated fair value gap in the Fib 0.618-0.786 area. (see blue rectangular box in the chart).
As I said above, it will take strong momentum for the price to break below the major support line. It makes sense for the price to retrace to the unmitigated fair value gap area to take out all the liquidity to fuel the momentum to the downside.
My trade setup is below:
Entry: 145 Stop/Loss: 144.25 (just under yesterday's candle wick)Target: 147.12
Risk:Rewards 1:1.78
Trade chiuso manualmente
I closed the trade manually while I am in profit. The trend might be shifting.
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.