The Dollar/Yen Tries to Push Past its High

USD/JPY (¥115.707)

The USD/JPY continues to keep us on the edge of our seats as we are waiting to see if we can find the strength to break above the peak at 115.98/116.00. Right now we are waiting on a bearish reversal to confirm. On the daily chart, above, you can see a hanging man candlestick formation taking shape, if this confirms then we will be pushing lower. Any correction lower should be weak and short lived as there is an overall bullish trend in this market. Buyers are still looking to challenge 117.95. However, should we see a close below 114.65, then we would have a short term top in place and turn our bias bearish.

Let’s consider some trading strategy as we look at the below 4 hour chart. The suspense is high in the intraday chart as we see a lot of hesitation one way or the other with consecutive Dojis. There are no clear reversal signals that have confirmed yet. Please note you can see the hanging man clearly on this chart. However, the buyers are not done yet. I am long at 115.91 with a target of 117.95. I have a stop loss at 115.90, on a daily close, to protect my downside should we confirm the bearish reversal and move lower.

Trading strategy is for educational purposes and do not constitute trading advice.