Ranging market on USDJPY right now. Market has tapped the resistance level 2 times forming its lower highs at the resistance. This resistance seems to be halting the prices everytime the market taps it. That being said, we will be looking for short USDJPY given the technicals on H4. With bearish market structure forming on H4, and being at a monthly swing point resistance, we anticipate the bearish leg ownards.

The retracement level of 75-78.6% totally confluence with the resistance level. This level will act as a catalyst for the market to move it down. 

The descending trendline is formed above the price action on USDJPY. We might see a retest on trendline at the resistance level, which will confluence it. 

Both the EMA's are below the market, indicating bullish sentiment on USDJPY. The death cross is also bullish on both EMA 50 and EMA 200. With the short trade plan, we are looking at the EMA 200 as the potential targets.

There is no indication on either of the oscillators for the market to go down. Oscillators are ranging and do not provide a clear direction right now.

This USDJPY setup is based on higher timeframe levels. On H4, we do not get more than 2 confluences for the confirmations of the setup. But the higher time frame levels, always take time to form a structure on lower time frames. Therefore, we will take the risk on USDJPY for the bearish move. If market breaks the structure upwards, we will consume the stop loss and look for another position.

Short USDJPY

Nov 02 2021

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