Market Analysis – USDJPY Intraday Trading Levels
USDJPY continues to move in a trending pattern after breakout of consolidation range last Friday. The pair gaped open on Monday, and filled in price by a retracement to prior resistance level at 114.83. In a trending pair, prior resistance becomes support. We have seen a bounce at this level with Fib Confluence off of the 0.382. How to trade the pair now? Well buy trades should have been placed at 114.83 by Bull Traders.
We are seeing a strong pullback by the bears in the short term. Let’s analyze . Bulls already long should have taken some profit off of their long trade at TP1- 115.38. TP2 for bulls is 116.088. Stop losses should be around 114.50. If price continues to fall at this point and forms a head and shoulders, then we can expect a move further down after a retest of the broken area. However caution should be taken at that stage as there will be firm support at 114.42. In summary, once price remains above 114.72, USDJPY is long.