USD/JPY Analysis

USD/JPY 1 hour Analysis & Explanation 

Lets get down to business. I want to explain exactly what I did here, so you are able to understand it and hopefully learn something. First I pinpointed all the support and resistance levels. Everything in red is resistance. As you can see the 104.1 zone has been tested numerous times. This gives me a good indication that the market won't go past that unless something happens other wise. Nothing has happened thus far, so I wouldn't worry. Earlier this day I caught a breakout which was the tiny trend line I drew, a retest occurred in the resistance zone. I took a sell right at that point and made 40 pips. I took another look at the market, and spotted yet another break out. For the past 10 hours it has been in consolidation and just testing that zone that I drew with the red square. I took my Fibonacci retracement tool and I dragged it from a low to a high and for 10 hours the 0.50 level has been tested. I feel like a big jump is about to happen and I really want to catch it in the right direction.

Lets Look At The 4hr

On the 4 hr USD/JPY chart I spotted a breakout and I am waiting for that candle to close. If it closes below the trend line then it is considered a successful retest, and we should prepare on making a sell.

Have a wonderful night,

ManBearBull