There is an upcoming trade in the USDJPY pair, and here is the methodology:
The weekly chart is showing a slightly bullish hammer but…the MACDBB is bearish. We are at a significant level (red line) on the weekly which has held so far. This means that the market is most likely to find support in this area short term.
On the daily, 4 hour and 1 hour chart, the market is showing a short term trade to the upside, but it is choppy
This trade has two parts:
- If the daily has a confirmed bottom at 110.578, then there is a daily long trade with a target of 112.322. Stop would below current price action.
- This is a weak trade and should be entered carefully.
- The longer term trade is to wait for price to get below 110.578 to go short with a target a 108.490. Stop would be above recent price action on the daily chart. Most likely 111.342 area if is holds.