Trade Idea: USDJPY Heads Back To Top Of Descending Channel
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
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All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: USDJPY Heads Back To Top Of Descending Channel
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bearish
Key Levels: Broken key level of support 109.01 and current support 107.81.
Price Action Signal: Awaiting a retest of the broken key level and channel top for a price action signal
Chart Notes: The USDJPY pair is now retracing back up to the top of the descending channel and key level 109.01.
With a strong bearish bias that remains intact, a possibility of another bearish move is likely.
Potential Trade Idea:
I am considering selling this pair again if the broken key level of 109.01 now holds as a new resistance. Along with the top level of the descending channel.
I will be looking for a strong bounce of this key level with a nice bearish reversal candlestick pattern.
This setup has plenty of free space, giving the trade idea room to head lower for a good risk to reward.
With a first potential target being the last daily lows. Will give the trade room to a 1-1 first target.
Then targeting a further logical target on this setup.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
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Now is your turn:
How are you planning this setup? What are you looking for to catch the next bearish move with this pair? Just leave any question or comments below.