Forex Trade Signal – Trade Setup July 29th
USDJPY – 4x so far
As suspected, the pair ran into the 20ema on the daily charts and sold off aggressively for 2 days following. This confirms the institutions are watching this and making plays off of it. With liquidity being down for the summer, its not surprising it is having a hard time breaking it.
Traders can go for a sell off a 5th touch with tight stops behind it (around 30pips). This gives bears a great play targeting 86.50. On the bull side, we are pretty much at the bottom for the year so if you want to go long, the price is right with stops only needing to be just below 86.25 setting targets at 87 and the 20ema at 87.60.
If the pair breaks, the bulls may come in with one last push off the 85 handle. There is a lot of talk of intervention around these levels and even though business confidence in Japan is solid and the BOJ is ok with the JPY being here, just the rumors alone could ignite a solid push off the lows so this is another option to get long on the pair.
If you would like to find simple high-probability trades using pivots and price action only, you can check out the Advanced Price Action or the ProForex Course which will teach you rule-based proprietary systems to trade these profitable setups.
If you have any questions about our courses, feel free to email me Info@2ndskies.com and make sure to comment below!