Friday, February 19, 2010

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

On the Daily chart above, yesterday, the bulls continued their activity in a very determined manner: after the break of Wednesday’s high @ 91.36 (not highlighted), which resulted in a clear break above the most recent Daily swing high @ 91.26 (that we've highlighted using the blue broken line), as anticipated, price continued its upward movement. Also, early market action today has seen price break above the previous day’s high @ 92.03 (also not highlighted). Consequently, from a day-trade perspective, our bias remains bullish. The next important resistance area we should be monitoring is the upper edge of the symmetrical triangle.
Today, the coast seems relatively clear enough for us to seek Hourly Long trade setups – supported by the H4 chart.

On the H4 chart above, price has broken the most recent Daily swing high @ 91.36 (which we've highlighted using the blue broken line) upward. That sustains our bias in favor of an upward price move.
The green horizontal line @ 90.55 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.

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