Today on USDJPY – Daily and H4 charts support Long trades, but…

On the Daily chart above, last week, 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 lower blue broken line); and has stayed above those levels. These are good signs sustaining a bullish or an upward-move bias. However, we have a new resistance level @ 95.28 (which we’ve highlighted using the upper blue broken line), and it would be nice to see price break this level upward to have a clearer coast. Please, I think it’s advisable to allow price break above this 95.28 level (which is just about 30 pips away) before we seek a Long trade set-up on the Hourly – supported by the H4 chart.

On the H4 chart above, also last week, price broke a couple of swing highs upward; the most recent of them was the swing high @ 94.37 (which we’ve highlighted using the lower blue broken line). From a day-trade perspective, this is a good sign supporting a Long trade. The green horizontal line @ 94.58 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. One thing to note, however, is that price seems currently stuck between the most recent swing low @ 94.58 and the resistance level @ 95.28 (which we’ve highlighted using the upper blue broken line) that we discussed on the daily chart. Personally, this range is relatively narrow for a H4 chart (just about 70pips), and, as a result, I’m willing to let price break above the resistance @ 95.28 before I seek a Long trade set-up on the Hourly.

However, in case the coast eventually becomes clear enough, 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.