DECEMBER 2024
IThe chart on the side shows the USDJPY monthly chart. This shows that the price is in a uptrend. Recently, there has been a stophunt and so the expectation is for price to take out the external range liquidity in the form of the most recent high. This high price is 161.98. Now that our expectations of a rise in price, we have to try and frame long trades with good risk reward ratio after a lower time frame stop hunt by the market makers
USDJPY DAILY ANALYSIS:
The daily chart again shows price in strong uptrend. We have marked the daily FVG areas which are internal range liquidity. These zones will provide the best long opportunities. The best area for long is the lower FVG but because the price may not come to this level. So the strategy is to watch price action in the top FVG to see if price will provide support here. If that support fails, then we can be reasonably certain that price will test the lower FVG. As long as price has not taken the external range liquidity above, then this zone is high probability area. As we are showcasing the trades, we will set buylimit at this zone. But traders can watch price and enter on lower time frames in this zone for a lower risk entry. The entry has been set as 155.60 with a 60 point stoploss and 600 point target giving a 1:10 risk reward ratio. We will take partials along the way.
GBPJPY 1 HOUR
The pound is much stronger than the JPY and even though it has fallen against the US dollar, has been in uptrend. We think that retracements will be modest and so we are looking for longs. The Fibonaccci retracement of the current range shows a zone below the 50% of the range. So we will be watching the price action in this area ( 19650)to look for longs. there is a chance that the price might retrace lower to around 19550. For this reason no automatic buy limit will be set. we will update if a setup forms.
eurjpy 4 HOUR
Similar to GBPJPY, we are looking for longs on Eurjpy. If we look at the daily chart, we are in a market maker buy model on these pairs. The USDJPY has already completed this. We are expecting EURJPY and GBPJPY to complete theirs in the coming weeks. It depends on the continued rise of USDJPY targetting its external range liquidity on the monthly chart. we are looking for longs in the zone between 16250 and 16150.
