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Watching for bullish price action at USDJPY key daily

USDJPY has just recently broken out of a ranging/consolidation period that the market was stuck in for the majority of February. A clear breakout occurred to the highside when the range top was breached in the heat of last week’s high impact news release frenzy. We are now seeing some of those gains being taken back as a bearish retracement took place earlier this week.

The bears have weakened price back into a key level, which was the old range top. This type of ‘range breakout & retest’ pattern can create good trading opportunities. We’re now watching for bullish price action to kick in here and confirm this price level is going to hold as support and create a new swing level. A nice strong candlestick reversal signal would be nice confirmation to consider long positions. Waiting to see how the candle closes at the end of the New York session.

If the bears push price lower, and the candle closes back into the range boundaries, then it’s likely we will see another test of the range support.

usdjpy testing old resistance

Dale Woods

Dale Woods

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.