Hello everyone how was your weekend? Well its another Sunday and time for another quick chart analysis. Today I will be discussing the USDJPY currency pair with reference to the daily chart below. Since about October, 2012 this Yen pair has been steadily trending higher, however there has been a fairly serious 600 pip correction over the last 3 weeks to the 97.00 support level.
As you can see a very prominent bullish pin par at this support zone. Now some extra caution should be afforded to this potential signal for a couple reasons. Firstly it occurred on a Friday. Many traders who were short last week may have decided to take profit before the close of the trading week which could account for the pin bar formation. Secondly, when the market opened up again about an hour ago we notice that price has gapped up above the pin bar. I was hoping that price would have gapped down toward the centre of the pin bar giving a better entry point and a better risk to reward on the potential trade.
Having said that the pin bar is very prominent and I will be paying attention to price over the next little while to see if price retraces to provide a tradeable entry point.
We’ll that does it for this post, and if you enjoy this blog please comment, share, like and join our newsletter!
Disclaimer: This blog post is meant for informational purposes only and is not to be taken as trading adivice.