Hi Traders! USDJPY bullish setup is forming at the moment. A detailed analysis of this buy setup is as follows:
USDJPY H4 Chart:
On the H4 chart we had a triple cycle up which has completed itself and currently it looks like the price is creating double wave down, which is expected to be a correction. We may now expect the price to move lower until it reaches the 38.2% – 50% fibo retrace zone of the triple cycle. Based on the fibo extension levels of the first leg of this double cycle, the 100 fibo extension level coincides with the 38.2% – 50% fibo retrace zone thus forming a magnet zone for us. Currently the price is creating the second leg of this double cycle, hence we may now expect one more push lower with the price creating the second leg with bullish divergence to form. Once the price reaches the magnet zone look evidences of bullish reversal and then we can go long with the breakout of the most recent downtrend line.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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