USD/JPY produced two consecutive bullish candles on the daily chart. Yesterday’s candle came out as a bullish candle with a long upper shadow. The H1 chart shows that the price made a breakout at yesterday’s lowest low. If the price goes back to the breakout level and produces a bearish reversal candle, the sellers may get an opportunity to go short in the pair.
Chart 1 USD/JPY H1 Chart
The chart shows that the price made a breakout at the level of 107.060 and traded below the level for several candles. The pair is trading around the level of 106.800 as of writing. The level seems to work as a level of support. The price may make a bullish correction. If the price goes back to the level of 107.060 and produces a bearish reversal candle, the sellers may go short below the level of 106.900. The chart shows that the lowest low is at the level of 106.100, which allows the price to make a big bearish move.
Trade Summary:
Entry: Sell below 106.900
Stop Loss: Below 107.060
Take Profit 1: 106.700
Take Profit 2: 106.635
Take Profit 3: 106.500