USDJPY is at a very critical level. The H4 chart shows that the price has been heading towards the North. The price already had a rejection from a significant level of Resistance today. However, the price had a little bounce from a level, which has the potential to be a strong level of intraday support. If the level continues to be the level of Support and ends up producing an H4 Bullish Engulfing candle, then an H1 breakout towards the upside would lead the price to go towards the North later today. Let us have a look at the H4 USDJPY chart.
USDJPY Price Action Analysis – 12th Sept 2018
See how the price has been heading towards the North on the H4 chart. Then that little rejection took place. The level of 111.450 is the level, which has to produce an H4 Bullish Engulfing Candle. If that happens, then we would have to wait for an H1 breakout at the level of 111.650 to take the long entry. Let us have a look at the summary of the trade…
- Buy Stop Order: 111.650
- Stop Loss: 111.450
- Take Profit: 112.250
- 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 H4 chart clearly shows that the breakout level could be a Double Top level on the Daily chart. The momentum could be changed and things could go another way as well. Thus, we have to be very sure about the breakout and the breakout candle. In fact, the breakout candle has to be a strong, good-looking Bullish H1 candle with very less spike at the top.
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