This is my idea on the USD/JPY on the H4 time frame. We can see that after an extensive downtrend the last 3 days from the previous week were devoted to a retracement. The level from which the pair bounced a few times, before breaking it, at around 110.65 proved to be a good support, which now turned resistance after broken. Also this level is a previous bottom to the downtrend. On Friday last week the correction wave reached that level, but failed to break it and instead the market close with 8 hours of down movement. I believe that this is a start of a new wave down, which I expect to reach the Daily (marked with green) at around 108.30, either this week or next. So I will be looking to Sell the pair on the lower time frames - mainly M30 or M15. I will also look for opportunities on the H4. A very important thing I want to say to everyone thinking of trading the pair, is to watch at the previous bottom where the down movement stopped at a price around 109.15. This is a level that may stop the new down wave, so keep it in mind, and I would suggest you to close some percentage of your trades on that level, if you see the price consolidating. If the level is easily broken, you can leave your whole position/s/ open until the 108.30 level.
Sell zone: 110.65 to 108.30
Possible stop area: Around 109.15
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I am currently monitoring a few other pairs and I will post possible ideas and scenarios later this week if I see any opportunities. I will also try to post Live Signals on our Twitter page.
Remember that Forex is about patience - wait for your moment and take home the profits.
I wish everyone a very profitable week. :)
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