USDJPY Dynamic Resistance|Structural S/R|200 DMA|Bullish Div| PA

7 באוק׳ 2020Evening Traders,

Today’s second analysis – USDJPY- trading at a key Dynamic Resistance where a confirmed break will make the immediate target, Structural S/R.

Points to consider,
- Price Action Lower Highs
- Local S/R Support
- Structural S/R Resistance (200 DMA Confluence)
- RSI divergence
- Stochastics Extended

USDJPY’s immediate price action is projecting lower highs; our bias will change once the Dynamic Resistance is breached with confirmed Higher Highs.

The Local S/R is immediate support that is likely to hold on first attempt that is if Price Action retraces here. There is a current Bullish Divergence at play showing immediate strength in USDJPY.

Current resistance is Structural S/R which is in confluence with the 200 DMA, Price Action is likely to respect this region upon first attempt, and a rejection will confirm a bearish retest.

The stochastics is currently over extended, a reversion to its mean in probable if price starts to correct here.

Overall in my opinion, USDJPY is a valid long with defined risk; price action is to be used upon discretion/ management of trade.

Hope this analysis helps

Thank you for following my work!

And remember,

“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas