USDJPY Trading Analysis

@Colibritrader

 

Dear traders,

It’s been a while without my weekly trading analysis. I usually do not find that many trading setups during the holiday season.

This has become a common pattern and I believe there is a reason for that.

The last trading article I wrote was about DAX. I wrote about it midday while the candle was a pin bar. By the end of the day this pin bar turned into a bearish red candle and rejected the trading idea.

A few days later a pin bar formed and gave bullish momentum to market participants. I was not able to react on time and missed this opportunity.

USDJPY Trading Analysis

I am sure all of you heard about the “flash crash” on USDJPY. Well, today there is a bearish setup, which might be indicative of more bearish action to come.

There is a bearish engulfing pattern on the daily chart.

There is a minor support level at 107.500, with which I will be extremely careful.

The next major support level is at 105.00, where USDJPY might be heading if it manages to break through the 107.500 barrier.

I will be looking for a bearish confirmation from the 4H chart  before (and if) I decided to go short on this one.

I will be possibly targeting the 105.00 level if price action does not indicate otherwise in the meantime.

Happy Trading,

Colibri Trader

p.s.

Check out my recent article on Trend Following 

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