Trade Forex - Forex Update: Looking to Buy USDJPY into the Support Zone



To Get Ross' Free Forex Update Analysis - Click Here: http://mytotalsupport.com/cpv/base.php?c=86&key=fd5d14f7ec45b14d31a944108238114b&ls=youtube&keyword=trade_forex&ad=jz78z7aZA9c Over the past several weeks, we have been challenging and testing new multi-month highs, and even this week so far, we’ve challenge a new high all the way up there into the 116-level. Pulling back a little bit as we prepare for this high-impact news and the potential change of interest rates in the US, we’ve seen a pullback and now settling down into support. The pink-shaded area at the very top of the chart is 114.90, down to 114.55. That’s representing historical support and resistance. It’s a historical decision zone. And really all I have to do is zoom it in a couple of times here and you could see the resistance back here. So, we know with some fact that this area right around the pink zone, three days specifically touching into the pink zone has been a decision zone historically, where buyers exited and sellers entered. We call that resistance. We often know that resistance can help us identify future areas of support, so that’s what we’re looking at 114.55 to 114.90 as our current area of support. Obviously the trend direction is up. I’ve put even a shorter trend line here. This black one to represent the most recent surge higher that this currency pair has taken. Like I said, it’s come back into the pink zone on a little bit of a lull before the storm if you will. Now, on the chance that they do not change our interest rates, if the interest rates remain the same, I think we see the reaction opposite of what you would expect, which is to go down. I think we’ll look for that reaction to go down if they do not change interest rates. If they do, obviously the market is anticipating the potential of a change and we may see it tackle higher levels up towards the 116 or even higher above the blue-shaded area. So, if they do change, we would look for this to find support and go higher, if they raise interest rates. If they don’t change, the possibility of a break of support and a turn lower is a strong possibility, if they do not change the rates. So, that’s what we’re looking at today. If you’re looking for low risk, high reward opportunities, it often means that you want to buy into support, so at least right now your lower risk, regardless of the news at the current moment. If you were going to buy this, your lower risk opportunity is to buy into support into the pink-shaded area. And right now just doesn’t give you any confidence to go short. There’s no reason to go short. We haven’t broken through support. We haven’t created any lower highs or lower lows, so there’s no reason to go short, but it’s more confident right now to long in the direction of the trend from the pink-shaded area with the caveat that we have highly sensitive news coming up over the next couple of days. Let’s take it down to the four-hour timeframe. Zoom it out a little bit, so we could see this a little bit better. Again, there’s our resistance back here on the left-hand side. We see the support over the past day and a half or so sitting on top of the pink zone. If you’re looking for a long opportunity, if you’re looking to buy it prior to the news, the pink zone is a place to do it. We know that really at this point you don’t want it to break that pink zone if you’re going to go long. So, the pink zone is it. If you’re looking to be more aggressive, take on risk, somewhere around 114.80 I think is inside that pink-shaded area, and that might be your opportunity to go long right now to give you your minimal risk. If you’re looking to go short, obviously right now the past couple of days should tell you that this is not the good place to go short. So, keeping in mind our news today, keeping in mind we’re at support, I think overall we have a long or bullish bias here for this currency pair, but keeping in mind news can change all of that as we go through the day today. https://www.youtube.com/watch?v=jz78z7aZA9c Disclaimer: This video is for general information only and is not intended to provide trading or investment advice or personal recommendations. Any information relating to past performance of an investment does not necessarily guarantee future performance. Forex Traders Daily including its analysts shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Please remember derivatives and FX spot carries significant risks and may not be suitable for all investors. Losses can exceed your deposits.

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