This week earlier, YEN was massively bearish which imploded the USDJPY to surge. This was due to the fundamental aspect of NFP. Overall, USDJPY is bearish and we have a trade plan for shorts.

- Market structure: The structure on USDJPY is still bearish unless it breaks the 110.60 levels to the upside. Right now, USDJPY is moving towards the major resistance level at 110.60. This resistance is also becoming a supply zone for the market where major order blocks had previously forced the market down. Overall the trend on daily and H4 is still bearish.

We will look for further confirmations at this resistance to go short.

- Trendline: Descending trendline is in formation and may be tapped at the resistance level. With this tap, we will wait for a rejection and then take a short. For instance, if market does break out buy from this trendline, we will wait for the resistance to be breached before looking for a buy.

- Retracement: The resistance level of 110.60 slightly overlaps with the retracement level of 75-78.6%. Also, this retracement level falls on the daily chart as well making it a strong indication to take shorts.

- EMA's: Recently, both EMA’s were pierced due to the bullish pressure, hence reflecting a bullish bias. It is to be noted that the death cross took place for the bearish bias. Although, the EMA breakout happened, the market has left us with a retest which needs to filled. At the resistance, we will short the market with price action and our partial take profits could be at the EMA retest of the EMA 50 or EMA 200.

- RSI/CCI: Both oscillators had been in overbought state: RSI being at 70 and CCI being at 215. CCI is over extend in its overbought region which reflects a factored confirmation for to pair to move down. RSI rarely taps the 75 level. Hovering around the 70 region, is also an indication of a hard sell off.

USDJPY is standing at a strong crucial region, in confluence with resistance and retracement level. Once the oscillators go overboard their regions, and market halts at a resistance/supply zone, we will jump on in the sell.

110.60 level for USDJPY shorts

Aug 06 2021

Take Profit +1.00%

Holding time 5d15hr

110.536

Entry price

109.429

Take profit price

1