USDJPY Daily Outlook for 19th December, 2013 (Thursday)

USDJPY Daily Outlook for 19th December, 2013 (Thursday)

Daily Chart

Wow, what a day we had!, Finally a clear break up and now trading in the 104's. 

Any retest of the previous resistance which now become support would be a good opportunity to ride it up a little further before a big downturn is expected.

• Currently RSI and stochastics are just under overbought condition. 
• Next resistance comes at 105.50 which is a long time 61.8% retrace level, 
• We have to take note a potential bearish butterfly is possible from the ranges up to around 105.50

Hourly Chart

• Huge break up to the 104 in the last trading hours of the day
• Stochastic and RSI are overbought
• In a channel
• Prices paused and retraced at the 127.20 fib extension
• Support is 103.90, any long opportunity could be entered around this area

Outlook Trade opportunity

If prices goes and retest the 103.90-104 - we will initiate longs
#Trade 1 - Buy at 103.90-104.0 - TP minimum 1:1 reward ratio

Risk Level - Medium

Tips -

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

Bored? - Quick scalps using high probability 5 minute chart harmonic / Fibonacci setups

Hey Guys,

Bored with the low volumes and volatility?

I am bored too! no sense of direction markets prior to the major news even in the USA.

I usually won't do this, so I opened my scalping mt4 platform with the harmonic indicator and waited for quick scalps, very quickly it identified a pattern on the USDJPY 5 minute charts, 

One point to take note is with low volitility and volume when the market is waiting for news, usually we trade in the days range with less chance of a breakout .

• The entry is very close to a Daily R1 Pivot, which gives it a high chance for some reaction for a quick scalp!

• Most people are greedy for pips, i know i am! and most of the time you loose potential profit because of greed and market went the other way! 

• So to secure me with a profit, i stay safe and take the first common level to take profit - 50 or 61.8% fibonacci retracement from the most recent leg

It doesn't look much pips, so this kind of trade only applies only if you have a very low spread broker.

Opened a larger than usual size due to range trading environment and good risk reward, i was able to take home 5 pips profit in i think 7 minutes.

Its not much! but a good risk reward!~ The trade was risking 2.5pips (stop loss), and after 4 pips (take profit) - so ratio was over over 1:1 (1.6 : 1)

As you can see, my prediction for a 61.8 retracement was to the pip!, you can see the pin bar formed there too!

Happy trading guys!

Cheers

Howard (#forex_trader168)