USDJPY, Potential BUY STOP, breaking and retesting trendline
We can see that USDJPY has broke the trendline of resistance in yesterday's session, as The Fed's rate decision rallied the U.S. Dollar. The price action so far in today's session is looking to come back below the trendline. In tomorrow's session I would look for a pin bar, with the wick reaching below the trendline. A bullish engulfing candle unlikely as the low-high of today's candle has a range of 50 pips.
Now, if we see price move up to 109.00 we could get hung up there as this is a whole level (quarters level) and we have previously seen 2 taps of resistance. If price action goes bearish here, sells are in place, and we would likely see a doji candle before the market reverses. If we see strong bullish candles past 109.00 I would look for buy entries.
In these trades, my risk is around 30 pips, and targets at 75 pips.
Now, if we see price move up to 109.00 we could get hung up there as this is a whole level (quarters level) and we have previously seen 2 taps of resistance. If price action goes bearish here, sells are in place, and we would likely see a doji candle before the market reverses. If we see strong bullish candles past 109.00 I would look for buy entries.
In these trades, my risk is around 30 pips, and targets at 75 pips.