DOLLAR-YEN giving another opportunity to get long
USDJPY gives another chance to get in. It is a 4 Hour / 240 minutes USDJPY analysis.
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*TREND ANALYSIS*
The above-mentioned pair made a significant low on 24th September o'19 which has not been broken yet. So, it can be assumed that the BEARS are still not in control of the market yet.
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*SUPPORT AND RESISTANCE ANALYSIS*
90 EMA has been always acting like a precious "VALUE ZONE" for USDJPY. It not only acts as support and resistance for USDJPY but also breaks the previous highs and previous lows after taking supports and resistances from it respectively. In technical analysis, we believe "History repeats itself". So, it can be assumed that the chart of
USDJPY will again break the prior highs (made on 18th September and 1st October o'19) if it took support from this EMA.
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*CANDLE ANALYSIS*
On October 1, Dollar-Yen made a huge bear candle but the bear candle has got no follow-through on a closing basis yet. This probably shows that the BEARS have run out of gas. Therefore, the big bear candle shows that the price might be at an OVERSOLD ZONE right now.
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*TRADE TRIGGER ANALYSIS* ----> *****Important
The price of USDJPY is already at a point where one can go long right now. ----> Aggressive traders
But there is a saying that goes like "Prevention is better than cure." So, I, being a conservative trader, would suggest that we should wait for the market to retest the low that will be made eventually. I would like to see the price failing to make a new low which would further prove my theory that the market is not willing to go down and that would trigger my long trade. This idea is represented by the 2 red arrows in the charts.
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*RED FLAGS*
The only warning is the blue dotted line that's shown in the chart. It's actually a trend-line that's been drawn from the highs of 21st May 2019 to highs of 31st July 2019 and to the highs of 18th September o'19. If the price falls from this trend-line resistance and gives big bear bars and breaks the low that would be made eventually, we should exit our trade. But for now, I wouldn't worry about it too much. Understanding that, I would suggest keeping this at the back of my mind.
How to take this long trade?
The best way to "TRADE MANAGEMENT" would be taking trades with 2 lots with appropriate ATR stops below the low that will be eventually made or the low at 24th September o’19 at 106.950 Yen and targets at-
1. 18th September high at 108.450 or 108.5 represented by the broken red line.
2. The 2nd lot to be squared off at the next Resistance levels at 109.000 or it will be left with trailing stops at appropriate levels.
This trade can have a reward – risk ratio of 2 or more if we play our cards right.
For traders who want to know more about my techniques or have any queries, you can chat with me directly through private chats. I will reply you back as fast as I can. Kindly like this post. Also, please do comment in the comment sections below. And I will love it if you follow me.
Thank You!
Disclaimer -
All the ideas posted on this website are published in good faith and for general educational purposes only. Satx98 does not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the ideas posted by me, is strictly at your own risk. I will not be liable for any losses and/or damages in connection with the use of my ideas.
--------->
*TREND ANALYSIS*
The above-mentioned pair made a significant low on 24th September o'19 which has not been broken yet. So, it can be assumed that the BEARS are still not in control of the market yet.
--------->
*SUPPORT AND RESISTANCE ANALYSIS*
90 EMA has been always acting like a precious "VALUE ZONE" for USDJPY. It not only acts as support and resistance for USDJPY but also breaks the previous highs and previous lows after taking supports and resistances from it respectively. In technical analysis, we believe "History repeats itself". So, it can be assumed that the chart of
USDJPY will again break the prior highs (made on 18th September and 1st October o'19) if it took support from this EMA.--------->
*CANDLE ANALYSIS*
On October 1, Dollar-Yen made a huge bear candle but the bear candle has got no follow-through on a closing basis yet. This probably shows that the BEARS have run out of gas. Therefore, the big bear candle shows that the price might be at an OVERSOLD ZONE right now.
--------->
*TRADE TRIGGER ANALYSIS* ----> *****Important
The price of USDJPY is already at a point where one can go long right now. ----> Aggressive traders
But there is a saying that goes like "Prevention is better than cure." So, I, being a conservative trader, would suggest that we should wait for the market to retest the low that will be made eventually. I would like to see the price failing to make a new low which would further prove my theory that the market is not willing to go down and that would trigger my long trade. This idea is represented by the 2 red arrows in the charts.
--------->
*RED FLAGS*
The only warning is the blue dotted line that's shown in the chart. It's actually a trend-line that's been drawn from the highs of 21st May 2019 to highs of 31st July 2019 and to the highs of 18th September o'19. If the price falls from this trend-line resistance and gives big bear bars and breaks the low that would be made eventually, we should exit our trade. But for now, I wouldn't worry about it too much. Understanding that, I would suggest keeping this at the back of my mind.
How to take this long trade?
The best way to "TRADE MANAGEMENT" would be taking trades with 2 lots with appropriate ATR stops below the low that will be eventually made or the low at 24th September o’19 at 106.950 Yen and targets at-
1. 18th September high at 108.450 or 108.5 represented by the broken red line.
2. The 2nd lot to be squared off at the next Resistance levels at 109.000 or it will be left with trailing stops at appropriate levels.
This trade can have a reward – risk ratio of 2 or more if we play our cards right.
For traders who want to know more about my techniques or have any queries, you can chat with me directly through private chats. I will reply you back as fast as I can. Kindly like this post. Also, please do comment in the comment sections below. And I will love it if you follow me.
Thank You!
Disclaimer -
All the ideas posted on this website are published in good faith and for general educational purposes only. Satx98 does not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the ideas posted by me, is strictly at your own risk. I will not be liable for any losses and/or damages in connection with the use of my ideas.
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