USDJPY has been rallying due to the fundamental factor of US economy flourishing amidst the covid pandemic.

We will analyze the H4 for intraday/ swing trade setup.

The structure on USDJPY is super bullish right now. Right now, it has to tap the major resistance level from where, a pullback is expected. This would be a level we will be looking for shorts. The price of 111.60 is a solid level for a pullback. We anticipate almost a 100 pips drop from this current level.

In formation, we have an ascending trendline. The pricese are basically in an ascending channel. From the resistance level, we expect the trendline to be broken. Once its breached with the breakout sells, we will have double confirmations.

The golden retracement area of 75-78.6% is on the weekly time frame and is in confluence with the daily and h4 resistance level. Whenever there is a weekly retracement level, the turnout of the trade has a higher probability.

The EMA 50 and 200, both have swapped their bearish death cross into a bullish death cross. The EMA's have been pierced and still need a retest. There is a high chance markets retest either of the EMA's with a pullback. With that, we will target our profit at the EMA's. 

Both the oscillators are exhausted at the over-bought regions. The over bought mark has been breached. So a pullback is expected any time. Earlier, both oscillators were in an over bought region but failed to turn bearish. This time, its the second time. So there are high chances for the market to take a dip.

The USDJPY is a good sell from the levels mentioned. After a strong rally, market usually has to pullback, on which we will monetize our trade. Stops should be kept above the resistance and once its broken, we will be out of the trade.

Another short attempt on USDJPY

Sep 28 2021

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