Categories: Forex Education

USDJPY setting up for a reversal

The US Dollar continued to move higher against the Japanese Yen, and traded above the 125.00 level. However, it looks like we are about to see a major top in USDJPY as there are many warning signs emerging. If we see the monthly chart, then we can notice that a similar rally happened in the late 1190’s when the pair fell sharply. Also, the pair is facing a major resistance around 126.00-127.00 where sellers might take a stand.
On the Weekly chart, there is a wave duplication pattern forming, which might stall the upside in the USDJPY pair. So, I think looking for a sell opportunity on the lower timeframe might be a good option.

Technical Analysis
Monthly – Critical resistance and similar wave formation on the monthly chart.

Weekly – Wave duplication is also around the highlighted resistance area.

Entry:
H4 – We can enter a sell trade for the USDJPY pair once the pair spikes higher to trade near the highlighted trend line and creates a bearish divergence.

Target 1: 124.00
Target 2: 122.00
Stop Loss: Above the high created before entering into the trade.

Video Explanation:

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.