USD/JPY new long positions after correction

21.07.2016 / 02:58

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USD/JPY 21.07.2016

D1 chart.

Correction of the long term uptrend to 50% Fibonacci and short term upward movement as price goes above 38,2 Fibonacci level.

Break above horizontal and diagonal resistances which are now supports.

Price action: dodji and price above the upper shadow for a probable increase

RSI(14) above 50 and CCI(50) above 0 - positive signal

H4 chart.

Price action: three white soldiers - trend confirming signal

RSI(14) above 50 and CCI(50) above 100 - positive sigнal

Possible to wait for a correction to 106,80 with goal for a smaller stop loss and minimize risk

SL: 106.15

Sentiment: Last statement by BoJ shows stimulus program for 20T yen as previous 10T expected, which is negative for the yen. Dollars stays stable because of the stable economy and speculations for a probable rate hike in September.

Alternative scenario: If price goes below the diagonal support this will negate the bullish formation.

Jr. Trader Nikolay Georgiev

Varchev Traders

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USD/JPY new long positions after correction

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