FX Trading Idea – USD/JPY

Price came close to the lower trend line which is also near to the 20EMA. Price has so far managed to hold above the trendline. Stochastic is still moving low but price is moving in the opposite direction. MACD on the other hand is still bullish and the fast line could be turning up after coming close to the zero line. The 20EMA gradient is steep, which is a hint of a strong bullish trend.

In view of the strong trend, we would like to follow the 20EMA and the MACD as well as the support at the trend line. If price can stay above the trendline we think price is likely to test the Triple Top again. A break of the Triple Top can lead to a price rally to the previous high at 112.23.

A good entry point could be near to the 20EMA around 110.25. At this entry, the stop is also low cost. Get out if price drops below 109.55. The initial target is at 111.45 and the final target at 112.20.

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