USDJPY Daily and Weekly Outlook for 6th January, 2014 (MONDAY)

USDJPY Daily and Weekly Outlook for 6th January, 2014 (MONDAY)

Daily Chart

• After rejecting from the 161.8 fib extension market tried to retrace however failed to go any futher and performed a nice pin bar on Friday 
• Signs are showing bullish (Price action)
• Indicators... stochastic are pushing south, but they are lagging, RSI just under 70

I have my eyes on the 106.100 area and will be very very happy to short it there as there are major fib extension levels of confluence.

Hourly Chart

• After a huge drop , we have found support at 104.1 level and saw price had quickly retraced 100% of the 2nd Leg (C-D)
• At close of Friday, price had stalled just below a resistance level , however candles prior to that are very strong bullish momentum
• Chances of breaking higher / breaking resistance is high

Outlook Trade opportunity

Three setups -

#1 - If price had not break the resistance, I will look for opportunity to buy long at around 104.650 with stops at the 104.450 - Targets at 104.830 tp1, and 105.110 tp2

#2 - If market breaks through resistance with good conviction and past 104.940 , I will look for opportunity to buy long at a retrace approx 104.915 and stops 104.746 with targets 105.110 and beyond

#3 - I have my eyes on the 106.100 area and will be very very happy to short it there as there are major fib extension levels of confluence.

Risk Level Low

Tips -

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