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

On the Daily chart above, price recently broke the most recent swing high @ 95.37 (which we’ve highlighted using the blue broken line) upward. This signals the possibility of further price movement upward. As we could see, price is within a downward channel – which is also visible on the Weekly chart – hence, let’s be wary of a downside pressure as price moves further upward toward the upper edge of the channel. There’s roughly a 100-pip space between current price position and the channel’s upper edge; I believe that, from a day-trade perspective, it’s still relatively safe to seek an Hourly Long trade set-up – supported by the H4 chart.

On the H4 chart above, price has broken the most recent swing high @ 95.35 (which we’ve highlighted using the lower blue broken line) upward. A resistance level – the previous day high @ 95.86 (which we’ve highlighted using the upper blue broken line) is a level we might like to keep in mind, and probably want broken. In all, from a day-trade perspective, the H4 chart is supporting a Long trade. The green horizontal line @ 94.00 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.