USDJPY has been on a strong Buy trend on the Daily chart. The price seems to have made a little correction as well. The last Friday’s candle came out as a Pinbar. This means as far as the Daily chart is concerned, the price might head towards the North again. If we flip over to the H4 chart, we see that the price has formed a Double Bottom. Then, the price has been Bullish and trying to make a breakout towards the upside. If the breakout happens and a full wave correction takes place, then we might get an opportunity to go long on the pair and make some green pips later today. Let us have a look at the H4 USDJPY chart.
USDJPY Price Action Analysis – 7th May 2018
As we see on the H4 chart, the level of 108.755 has been working as the level of Support of a Double Bottom. If the level of 109.210 gets broken by the current H4 candle and it produces an H1 Bullish Engulfing Candle to finish off the corrective H4 candle, then the price would reach 110.000 without having that many pauses. Let us have a look at the summary of the trade…
- Buy Limit Order: 109.210
- Stop loss: 108.755
- Take Profit: 110.000
- 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
None of the currency of this pair has any high impact news event today. Thus, if the signal comes after the corrective H4 candle, we do not need to worry about anything. Let us wait and see whether the breakout and proper correction take place or not.
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