A few weeks ago I asked you about the type of content that you’d like to see on my blog… and most of you suggested me to write more about entries and the reason behind them… so here I am writing this post…

Setup

Yesterday I told you why I thought it was a good idea to go long in the USDJPY. On the long term charts, the market just broke through an important resistance and it is likely to continue its way up…

So we are clear on the long term charts right? If not, please refer to yesterdays post.

My Trading Plan

So created my plan… I showed you this chart:

You’ve seen how the USDJPY has been trading in the last few months, it’s been going up and up and up without looking back.

Since February though, it reached an important resistance level (read it “zone”), and its been ranging since then.

Let me show you the 4H chart:

Since the first days of February, when the USDJPY reached this resistance level at 93.80, it started to trade in that range (green levels), has been difficult to break either extreme of the range.

Have you been trading the USDJPY?

About a month ago did analyze the USDJPY and thought it was about time to start trading the USDJPY.

Why?

Because it broke through an important resistance level, and there was a long way before it hit the next resistance level, which I have it at 84.06 (around 120 pips from where it is currently trading at).

And you know something, I think it’s still safe to look for long opportunities. Here is the chart:

A few weeks ago I wrote about the USDJPY and how close it was to the medium term resistance level.

Back then, the market wasn’t able to break the resistance level, I guess the market just wasn’t ready yet.

But earlier this morning it broke the resistance level triggering a bullish condition:

It’s been difficult to trade the USDJPY in the last few months. Mostly because of the range medium term range, which has no clear S&R levels…

Or maybe it’s just me but I don’t like to short the USDJPY and you probably guessed why, because of the BOJ interventions.

But when it comes to look for long opportunities, I’m more than happy to trade it…

Let me show you this chart:

The USDJPY long term charts are not that encouraging… I have my doubts about a few support and resistance levels…

But take a look at the short term charts:

It’s been a while since the last time I traded the USDJPY, it was complicated because it was trading around “intervention” levels. But now, it’s way above those levels, and even if the BOJ intervenes, it’ll be in our direction.

So I’m definitely going to look for long opportunities. This is what I see on the short term charts:

Clear enough don’t you think?

Are you trading the USDJPY?

Good trading!

Raul Lopez
Forex Training

Are you afraid of BOJ interventions? You should, I’m afraid too, but only if I’m going short, because every BOJ intervention makes the USDJPY skyrocket… But what if I’m looking for long opportunities? Well, if there is an intervention, it will be on the direction of my trade, it will actually help my trade hit my TP order faster :)

Anyway, The USDJPY just broke the top of the ST range, meaning it is already in a bullish market condition:

It’s late on the week for my taste though, I don’t want to get stuck in a trade over the weekend when the market is so close to my entry level, I’d rather wait for next Monday to build my positions here.

Have a great weekend!

Raul Lopez
Forex Training