Trading Plan for USD/JPY for July 27, 2018
The outlook for USD/JPY looks to be bullish at least in the short term. As depicted here on the 4H chart, the pair has been forming higher highs and higher lows since May 2018. Moreover, it has bounced right from the support line that connects previous 2 bottoms/lows at 110.60 levels yesterday. Looking into the wave structure, the pair is poised to stage a rally from yesterday’s lows and push above 113.00 levels before producing a meaningful pullback lower. Furthermore, the pair is finding support from the past resistance turned support zone as well. Looking into all these convergence points, it is high probable, that USD/JPY is headed north from here till prices stay above 109.30 levels.
Remain long, stop at 109.25, target above 113.00
Watch out for US GDP figures to be out today at 08:30 AM EST.