Today on USDJPY – Daily and H4 charts support Long trades.

On the Daily chart above, since last week, the base of the downward channel has been doing a good job of holding price from moving further downward, and with a series of reversal candle patterns (including hammers and spinning tops/inside candles), price seems set to rally upward – probably toward the upper part of the channel.

On the H4 chart above, price recently broke the most recent swing high @ 92.93 upward. From a day-trade perspective, this automatically shifts our bias for price movement upward. The green horizontal line @ 91.71 highlights the most recent swing low, and as long as price stays above it – in the absence of any new and higher swing low – our bullish or upward bias remains intact.

However, we still need our hourly charts – using Fibonacci retracement levels and important support levels – to seek promising areas to take our long positions. Price pattern on the hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today’s up-trend.

Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.