USD/JPY rallied last week after tagging 103.55. This was an area to expect buyers on a dip as noted in a previous post:
USD/JPY - Buy at 103.55
Although USD/JPY has not cleared above the high of the week at 104.27, it looks ready for bullish continuation as price pushed above the cluster of the 200-, 100-, and 50-hour simple moving averages as well as a falling trendline from the week.
With the bullish outlook revived, we can consider initiating or adding a position on a near-term dip. Looking at the 1H chart, if price falls back to 103.80-90 area, USD/JPY would be testing a some support factors, such as the SMAs and a near-term rising trendline.
The upside remains toward 105.44. The target therefore could be 105.35.
If price falls below 103.50, we are likely in a consolidation and we might have to shelve the bullish outlook for the short-term. So, let's say we put a stop-loss level at 103.40.
With an entry at 103.85, the stop-loss risk is 45 pips (103.85-103.40). The potential reward would be 150 pips (105.35-103.85). That makes it a 150:45 or 3.3:1.
USD/JPY 1H chart
USD/JPY - Buy at 103.55
Although USD/JPY has not cleared above the high of the week at 104.27, it looks ready for bullish continuation as price pushed above the cluster of the 200-, 100-, and 50-hour simple moving averages as well as a falling trendline from the week.
With the bullish outlook revived, we can consider initiating or adding a position on a near-term dip. Looking at the 1H chart, if price falls back to 103.80-90 area, USD/JPY would be testing a some support factors, such as the SMAs and a near-term rising trendline.
The upside remains toward 105.44. The target therefore could be 105.35.
If price falls below 103.50, we are likely in a consolidation and we might have to shelve the bullish outlook for the short-term. So, let's say we put a stop-loss level at 103.40.
With an entry at 103.85, the stop-loss risk is 45 pips (103.85-103.40). The potential reward would be 150 pips (105.35-103.85). That makes it a 150:45 or 3.3:1.
USD/JPY 1H chart
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