Important: I use New York close charts. Click Here to Use My Preferred Broker
USDJPY bulls are on the move after testing the 112.00 support handle on Friday. However, the pair just retested the 113.00 resistance area which could slow today’s climb.
I’ve received several emails asking for an update on the USDJPY. As of now, not much has changed since Friday’s commentary. Yes, bulls are gaining momentum, but as mentioned above, prices remain below the key 113.10/15 area.
Given the time of year, I’m not very interested in trading this pair at the moment. In fact, I have little interest in trading anything between now and the new year. And if I do open a position between now and then, it will be half-size or smaller.
WE RECOMMEND THE VIDEO: BEST FOREX SCALPING STRATEGY for Beginners | $100 / Day (STEP-BY-STEP)
BEST FOREX SCALPING STRATEGY for Beginners | $100 / Day (STEP-BY-STEP) In this video Adam breaks down the easiest forex scalping strategy for ...
That said, a bearish pin bar on a retest of the confluence of resistance at 113.10/15 would pique my interest. Though I wouldn’t use a full-size position given the liquidity drain the markets experience this time of year.
Some may also be wondering whether or not this is a 4-hour head and shoulders pattern.
Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!
It might be, but I don’t trade the head and shoulders or its inverse on anything lower than the daily time frame. The price action since December 1 could be carving a bearish reversal pattern of sorts, but all eyes are on the 113.10/15 area.
As long as it holds as resistance on a daily closing basis (5 pm EST), the 112.00 area remains exposed. A close below that would open the door to the November low at 110.85.
On the flip side, a session close back above 113.15 would put buyers back in control. It would also expose the next key resistance at 114.35.
Want to see how we’re trading this? Click Here to Join Justin and Save 70%
Leave a Comment:
8 comments
the head en shoulder is at 1h
I lost today at SL at 113,016 🙁
Losing is a part of trading. Don’t let it sorry you. There is always opportunities in the market.
I understand. But the problem is that I lose more than I win, and so I have no profit 🙁
I have no idea what the UsdJpy is going to do but I do know as you stare at your daily, weekly and monthly chart of this pair you are looking at a nice opportunity. UsdJpy has spent the better part of 2017 backing and filling in roughly a 600 pip range. Since Oct 1st it has shrunk down to roughly a 375 pip range coiling tighter. Very likely this puppy is setting up for a breakout (sooner rather than later) leading to a large trending move in 2018. When that time comes I am sure Justin will be here for guidance…
USDJPY .. have a look at 30 minute ..171218 1030 to 171218 1130 over 1 and half hours .. massive volume build up on down bars .. it had to go up from here … major Signs of Strength SOS appeared and then momentum carries it through … Cheers Nelson
Descending trend line from peaks till 11.05 to 12.12 made good resistance to the market at 113.450. Nice price rejection and short setup.
Justin, won’t you think?
22 day: yesterday it holded above 113,15. But I see resistance line from november 6 touching december 12. And yesterday and day before it worked.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.