Forex Trade Signals and Setups Mar. 19th

USDJPY – Looking Set to Extend Gains

For the first time since Jan. of this year, the USDJPY has formed 3 bear candles in a row.  Although this may seem intimidating for bulls, I am expecting price to go higher, minimally retesting the current yearly highs at 84.18, probably during the london session.

Why?

price action forex price action strategies 2ndskiesforex mar 19th

Rarely ever do tops create a forex price action appearance like we are seeing on the daily chart, with a strong bull candle, then three doji-like pullbacks.  With the high of the first doji printing at 84.18, and the low of the last bull candle at 82.85, in essence we have our short term range and thus our lines in the sand.  If price breaks below the lows of the last bull candle at 82.85, then we will expect price to test support at 82.50/60.  If this goes, then we would be quite surprised if the bears can push price past 82.00 where we will expect strong buying.

In essence, I’m not sold this trend is done, and am expecting higher highs and an eventual challenge of the 2011 highs at 85.50 so will take any pullbacks to the daily 20ema and 82.00 as a buying opportunity. Only a break and close below 82.00 will change my view on this one.

EURJPY – Breaks Yearly Highs

Truckin along now for 5 bull candles in a row, the EURJPY has just broken the yearly highs taking out a key resistance level at 109.94 and the key big figure at 110.  The daily candle closed at 110.32 so we are expecting price to continue higher targeting the next major swing high at 111.51 from Nov. 2011.

price action forex trading 2ndskiesforex mar 19th

We would like to note from a price action perspective every one of the last 5 bull candles pulled back into the range of the prior candle without fail.  We suspect price will either pullback to the 110.14 intraday resistance level or the 109.94 levels before new buyers come in.  The prior pullbacks could have been caution on the bulls part approaching the yearly high, but now that they have cleared it, we are looking for a breakout retest setup of the aforementioned levels to get long so watch these levels for price action triggers.

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EUR German Producer Prices (YoY) GMT  07.00 / EST 03.00
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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • jano

    Hello,

    Just curious,
    on UJ pullback to 20 ema for you is a bias or is a trigger to go long?
    or one should wait for reversal pattern?
    although I think I know answer on this one:)

    Regards

    • Both trigger and bias. But I was already long on UJ and would not suggest waiting for a reversal which really doesn’t make sense when its in a bull trend so you should be looking for longs – not waiting around for reversals.

      Does this make sense?

      kind regards
      chris

      • jano

        sense, if its make money yes of course…in general I would say no.

        so preceding action before touching ema isnt important?
        lets say you see big red 3 previous bars ‘engulfer’ which is touching ema at the same time, would you enter this?

        My Regards,
        Jano

      • Of course preceeding price action is important – you’ve been to a ton of my webinars – when did you not hear me say this?
        ive talked about it dozens of times.

        always has to be taken into context is what ive always said

        kind regards
        chris