USDJPY - uncertainty before stormy days

Jul 3, 2018

Generally, signals from 4h chart have indicated advantages for the bulls, but my opinion now is to wait few more days before actually entering long. As you can see, we have an impulse way from 23/3 and finish when price crossed the green trend line at 22/5, and now the correction period seems to finish as price climbed over the important red resistance level (110.9). Currently there are 2 plans we can expect - first, price continue to raise and climb over the (5) peak, and indicate the possibility to increase higher, and secondly, price still increase to peak (5) but will face the pressure from sellers. In this case, waiting for a pull back to the red trend line to enter long (110.000) with a stoploss just below that line. Stochastic is near the overbought zone but it's just a signal illustrating bulls are taking control the market, but any close price above 111.4 will be a perfect signal for the bulls.