Hi Traders! Today I am sharing with you my USDJPY short term forecast and technical analysis post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available
On the H4 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we have a bearish divergence that has formed between the first high which formed at 145.970 and the second high which formed at 146.742 based on the MACD indicator, which we may consider as evidence of bearish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme here which we may consider as yet another evidence of bearish pressure. Also, while measuring the big and small wave of the correction, we have two key resistance zones that has formed. The first key resistance zone is formed by the 61.8%(146.952) Fibonacci expansion level of the big wave and the 100%(147.340) Fibonacci expansion level of the small wave. The second key resistance zone is formed by the 100%(149.139) Fibonacci expansion level of the big wave and the 161.8%(149.190) Fibonacci expansion level of the small wave Until these two key resistance zones (marked in red) shown in the image below hold, my short-term view remains bearish here and a valid breakout below the most recent uptrend line would be the validation for this short-term bearish view.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team.
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