I like to see the market trading near long term support or resistance levels, this way I can map the short term support and resistance level it needs to break in order to start looking for trading opportunities.
The USDJPY right now trading just above the long term support level at 94.55, take a look at the chart below:
So here is my plan:
As long as the market keeps trading above the short term resistance level (95.13) I will look for long opportunities. An eventual break should take the market to 96.22
As long as the market keeps trading below the short term support level (94.61) I will look for short opportunities. An eventual break should take the market to 92.14
If the market keeps trading in between the short term range 95.13 and 94.61 I will do nothing.
Tags: USDJPY Analysis