In today’s article we are going to be covering USD/JPY and the long position taken by us and our students here at AspireFX.
As you can see in the above picture, we have highlighted this weeks price action. This is to give you a clear understanding of the price action we had available to us at the start of the week and to show you how we decided to gain our long positions.
As indicated, we can see price had a sharp decline on 23rd April, creating a new lower low. After this, price failed to continue in a descending manner as we created a lower high, but this was followed by a higher low, indicating that the bears within the market were struggling to stay in control.
From this point in time, we knew buys were a huge possibility but we needed more confirmation and as you can see, very quickly after creating the higher low for the first time, price left 3 wicks into the psychological level of 108.500 before we continued upwards to create a new high. Once the new high was printed, this confirmed a bullish structure for us and we knew we needed a pullback to gain entry and it was just a matter of time.
Looking at the 4H timeframe above, we placed our fibs from the higher low to the new high created and awaited a pullback. In the picture above, you can see an inner and an outer trendline. AspireFx originally gained our entry on the inner trendline and the 61.8% Fib level, however we went into some drawdown with our entry being at 108.850 as USDJPY had a slightly deeper push into the 78.6% Fib level before making the move to the upside.
The above image is how the trade is running as of right now. USDJPY is up 100 pips since the call we made in our Telegram group with us targeting the area of 110.000 – 110.200 giving us a total profit of about 130 pips on this trade.
Above we can see the fundamentals for next week Monday. With it being a bank holiday in the US we might look to close our positions and not hold them over the weekend but this is something we will let our students know. We also have JPY retail sales coming in which previously came in lower than expected to if this happens again it could be the catalyst to hit our TP if its not hit before then.
If any of the analysis used in the above article interests you or if you are interested in becoming a member of our telegram group please don’t hesitate to contact us via email ( firstname.lastname@example.org ) or DM our Instagram page directly ( @Aspireinv_fx ) and we will assist you in getting your journey to become a profitable trader started.
We hope you enjoyed the read and have a great weekend!