USDJPY Forecast and Trade Setup for the week 26th May, 2014

USDJPY Forecast and Trade Setup for the week 26th May, 2014

• Possible Bearish Cypher?

Daily Chart

• Last week we have seen a bullish Pin bar candle from an important Support level which had provided some bullish momentum
• there was also a stochastics bullish divergence
• Having said that, I do not like the fact that the support zone has been tested too many times and it does hint to me it will break the support as all the buy has been filled
• we have the Ichimoku clouds and trendline in a strong resistance area which may limit the upside

Hourly Chart

• Using Ichimoku study, on the H4 chart we are trading above the clouds suggesting of a bullish trend.
• should take note that it only broke through a thin ichimoku clouds (which could give a false signal)
• Currently we are flirting around the Support and Resistance zone and if we managed to bypass that to the upside then we may see it retest the 102.50 and which comes with a very strong resistance together with confluence of 88.6/50 fib and monthly pivots and weekly R1 pivots
• If so, this could be a potential bearish cypher (sorry didn't illustrate the chart with the triangles)

Outlook Trade opportunity

Although last week we see a bullish pin bar Daily candle from major support, this support to me is very exhausted.  I would be bias to be on the short side of this pair.I would have a short order around the 102.50 and i also have a scalp trade just around the 102 figure due to a lower timeframe chart setup

Risk Level LOW

Tips -

Always take note of any economical news event on our provided calender below