USDJPY Trading Setup

ECB rate cuts odds by the end of year remain very low. That did not give a lot of pressure on EUR/USD today. I will be looking towards the end of the week, when Euro-Zone inflation figures are out.

by: Colibri Trader

The trading setup from last time has already given a very good return and hit our first target. I don’t see a reason for taking all profits at this stage. For the more risk-averse amongst you, you can take half of your position off the table. For me, price action is still pretty bullish and I am looking for further gains.

USDJPY Trading Setup

Today’s trading setup is USDJPY. I am looking at this trading setup with a pinch of caution. There is a bearish engulfing pattern on the daily timeframe. What is putting me off is the proximity to the support area. This could be last engulfing pattern, which could make it a reversal pattern. The lower timeframes, though are showing me more bearish than bullish bias. I am still hesitant to take a position with the normal size I am taking. If I am about to take a trade, it will be half the size and I will be looking for a small correction towards 100.55 to enter in a short trade. My stop-loss would be placed just above 101.35. My first target is the level of 99.00. Then, it will really depend on price action.

Happy Trading,

Colibri Trader