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

On the Daily chart above, yesterday, price closed above a cluster of resistance levels, two of which were the downward trend-line (the red dashed line), and the most recent Daily swing high @ 94.77 (which we’ve highlighted using the blue broken line). These are good signs confirming a bullish or an upward-move bias. Though, we are still within a downward channel formation, there seems to be enough room for price to venture further upward toward the 96.50 area.

On the H4 chart above, price has broken a couple of swing highs upward: the most recent swing high @ 94.37 (which we’ve highlighted using the lower blue broken line), and a higher previous swing high – which happens to be the same Daily swing high discussed earlier – @ 94.77 (this we’ve highlighted using the upper blue broken line). From a day-trade perspective, this is a good sign supporting a Long trade. The green horizontal line @ 93.07 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.