USDJPY: Seven-Year High Near 114.83 Within Close Range as Pair Still Extremely Bullish
The daily candle chart below shows the medium term price history of the United States Dollar (USD) versus the Japanese Yen (JPY). This currency pair is known as USDJPY, and is trading around 114.41 around time of publication today.
At the end of last month in the last post about this pair in the Ideas You Can Trade series, a parallel support line had emerged, and since then the USDJPY resumed its surge higher towards current levels.
Looking at the longer term monthly candle chart below, the pair is very close to reaching a seven-year high, and there is still plenty of upside for the USDJPY with 122.00 within reach in the coming months ahead. This very bullish momentum was forecasted as can be seen in the steep trend lines drawn at the end of September just when the breakout of the range had started, and as discussed in a previous post.
Below are example of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 113.74 with a Limit to take profit @ 114.78 and a stop-loss @ 113.32 Risk/Reward Summary: Limit risk = +104 pips profit / (-42) Stop-loss risk = Gain to Loss ratio = 2.47
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 112.48 with a Limit to take profit @ 111.53 and a stop-loss @ 112.92 Risk/Reward Summary: Limit risk = +95 pips profit / (-44) Stop-loss risk = Gain to Loss Ratio = 2.15
Medium Term Daily Candle Chart:
Longer Term Monthly Candle Chart: