Direct from the desk of Dane Williams.
Hey team,
Back to the forex charts today and a follow on from my last USD/JPY analysis blog, published all the way back at the end of October.
Yikes, it's certainly been a while!
If you click that link and take a look at that sequence of USD/JPY blogs, we were actually buying as price held daily support.
You can scroll back on your charts and throw up some risk:reward tools on it yourself, but there were plenty of short term pullbacks that paid out 1:3.
As always when I'm doing a forex market analysis blog, I'm just going to drop a link to my simple forex support and resistance trading strategy for you to peruse through at your own leisure.
Why I found this one interesting, was that the exact daily zone we were using as support, on those previous touches, was just cleanly rejected as resistance.
Take a look at the USD/JPY daily chart below.
USD/JPY Daily:
As a more conservative trader myself, my strategy speaks about now zooming into an intraday chart such as the hourly and searching for a short term area of support.
When this short term zone (as simple as an obvious red hourly candle), is retested as resistance, you have an entry signal and a clear zone to manage your risk around.
Sure, this rejection from the daily zone has been hard and fast, but let's see how it plays out.
The building blocks are there.
Since getting a new MacBook Air, I frustratingly haven't been able to install MT4.
While it's tedious for me to do all of my entries and exits via my mobile, it is actually a lot clearer to be charting on TradingView.
Take the good with the bad.
Best of probabilities to you,
Dane.
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