Technical Analysis USDJPY : 2014-07-01

Good afternoon, dear traders. Here we consider the USD/JPY currency pair on the H4 chart. As we can see, the price broke the resistance of the H4 trend channel. This happened simultaneously with the bullish ParabolicSAR reversal and upward PivotPoints signal line crossing. There is no contradiction on the part of the RSI-Bars oscillator: the indicator confirms the upward movement.


The only ambiguous signal comes from the "balance" candlestick pattern (the model is marked in yellow on the chart). It was formed immediately after the H4 line breach. It introduces uncertainty about the intensity of the new trend. We believe that we should wait for the price to come above 101,532, which corresponds to the peak price of the “balance” candlestick pattern. There is every reason to believe that the upward trend will continue, especially as the daily and weekly trends are rising. We also note that the price has already gone beyond the PivotPoints channel into the green zone: there is a bullish channel breach.

Pending Buy Order is to be preliminary placed above the balance candle peak at 101.532. This key level is confirmed by the ParabolicSAR historical values and the first PivotPoints resistance. Stop Loss is to be placed below the previous Bill Williams fractal at 101.245. This support is strengthened by the historical values of both trend indicators. Opening a position, it is recommended to move the Stop Loss after the parabolic values every 4 hours after the order execution. Thus, we can optimize the return/risk ratio in our favor in the process of changing market conditions. If you decide to take a break from the market, the automatic Trailing Stop can be placed, taking the distance between the two previous Parabolic indicator values into account.

Position openingabove 101.532
Stop loss below 101.245


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