USDJPY has been having a downtrend on the H4 chart for a long time. The price has kept making new lower lows. The second H4 candle today was a massive Bearish candle, which also made a breakout at a significant level as well. This means there is a high chance that the pair might offer us a short entry later today if things go accordingly. Let us have a look at the H4-USDJPY chart.
Have a look at that massive H4 Bearish candle which made a breakout at the level of 107.400. This was the previous days lower low. If the current H4 candle finishes within the breakout level and an H1 Bearish Engulfing Candle is produced right there, then selling the pair would get us some green pips. Let us have a look at the summary of the trade…
- Entry- H1 Bearish Candle at 107.400
- Stop loss- Above 107.890
- Take profit- 106.150
- 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
The downtrend on the H4 chart is too strong, as it seems. Thus, the price might not wait for another three hours to offer us the short entry. However, we should wait for the price to have some correction up to the breakout level. Only that is when we get an excellent risk and reward ratio. If the price does not go to have a full-length correction (up to the breakout level), then we might as well skip taking the entry. Remember, there is always another day in the Forex market.
The post USDJPY Price Action Analysis – 14th Feb 2018 appeared first on Advanced Forex Strategies.
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