Weekly Price Action Setups & Key Levels | Nov 2-7
USDJPY – Breaks Major Resistance + Yearly Highs (4hr chart)
Also being a one-way beneficiary of the BOJ, the USDJPY rocketed 3 handles from the news, taking out the major resistance at 110 and the yearly highs in the process. As I’ve been writing about for a long time, I’m suspecting a big bull run in the USDJPY, and this break of the key level helps add fuel the the fire.
For now, pullbacks into 110.30 should be considered a buying opportunity. More aggressive levels to get long would be 111.87 and 111. Only a daily close below 110 would stunt this bullish momentum.
Upside targets are 115, 119 and 121, with the potential over the next several months/year for this pair to hit 135 and 135.
Nikkei – Price Action Squeeze Leads to Breakout (Weekly Chart)
As we’ve mentioned in prior commentaries, the Nikkei looks like it’s heading for a major breakout above the yearly highs. Our breakout trade setup from last week’s member commentary also played out offering quite a lot of profit for those who traded it.
Looking at the weekly chart below, we can see the price action squeeze and weaker rejections preceding the breakout of the key 16375 mutli-year resistance (now 700 points higher).
Our bias remains bullish while above this level of a daily closing basis, so any pullbacks should be considered buying opportunities, with 16375 being the major pullback level, and 16500/550 being the next one above.
The next resistance level comes in at ~17400, but beyond here, there is not much till 18000 and 18242, so a lot of upside available.
Also in our weekly member trade setups commentary, I discuss trade setups on the EURUSD, GBPJPY, Dow Jones, S&P 500, & the EURJPY. Click here to become a member.
Watch our latest video of a Live Price Action Trade Setup on the Dow Jones which profited +7R.
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