USDJPY Technical Analysis November 2/2019
USDJPY remains bullish as long as the August 26/2019 low remains untouched. In this analysis of the USDJPY pair, market patterns will be used to determine where price can possibly reverse and bounce higher from. In the chart below, there are 3 possible bullish patterns that can trigger BUYS near the same area. The blue bullish pattern triggers BUYS at the BC 0.50% Fib. retracement level and 2 bullish patterns (pink) triggers BUYS at either the XA 0.886% or XA 0.786% Fib. retracement level. We have yet to see which of the 2 pink bullish patterns will form. At the moment price is bouncing from the pink XA 0.50% Fib. retracement level so it seems the XA 0.886% BUY trigger can be the one to watch for. Traders still need to be patient and wait to see where the pink point C terminates and also watch if price bounces off the XA 0.618% Fib. level where then the XA 0.786% level can also also trigger BUYS. For now, the main bullish pattern to watch will be the blue XA 0.50% Fib. level where if either any of the 2 pink bullish patterns form they will both trigger BUYS near the blue XA 0.50% Fib. level. Traders should watch these three BUY levels in the reversal zone (blue box) for a possible reaction bounce higher because there has been previous support/resistance price action in the past. Blue bullish pattern invalidates if price breaks below the point B low and the pink bullish pattern invalidates if price moves below the point X low. Traders will need to wait and watch how price reacts at the possible reversal/support zone (blue box) and see if the market reacts higher to any of these bullish patterns. If looking to trade USDJPY stops should be placed at the point B low of the blue bullish pattern or for tighter stops at the point X low of the pink bullish patterns and looking for a bounce/rally higher to extend above the October 30/2019 highs. Only time will tell what USDJPY will do but at least now you are aware of the possible area where the pair can bounce higher from.
USDJPY 4 Hour Chart 11.2.2019
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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