USDJPY Trading Setup

Dear traders,

The past week was not really rich in price action trading setups. I have been monitoring DAX for a short entry, but in the end have not taken it. There is some bearishness in the price action of this instrument, but still hard to take action against the trend. It could be a minor/major turning point, but I prefer to see a stronger resistance level around before going against the trend.

USDJPY Trading Setup

My eyes are looking at the USDJPY today. Seems like this pair’s got most of the characteristics for a short-sell. The price has reached the level of 115.50, which looks like a level that has been tested a few times. The sellers definitely outnumbered the buyers and pushed the price down. It could be the case this time too! I am also looking at the daily pinball that was formed on Friday. Depending on the intraday confirmation, I might go in a short trade. If I do so, I will be looking to enter at around 115.00. My stop-loss would be placed just above the pinbar at 115.60. My first target will be the level of 113.50. The next level I will be targeting is 111.50. 

Happy Trading,

Colibri Trader