USDJPY Is Dropping. Is This Just the Beginning?

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This morning I alerted subscribers of the Forex Profit Accelerator Newsletter to the bearish hourly pattern setting up on the USDJPY.

Now, you might be thinking, why would anyone be bearish on the USD in light of the fact that, in this market, it seems to just keep going up?

First we'll take a look at the daily chart of USDJPY.

As you can see, it has moved up into a long term downtrend line, which also lines up with some resistance to the left. So, the daily timeframe it giving us a bearish bias.

Now I take that down to the smaller timeframes and see if I can find an opportunity in alignment with the daily.

Take a look at the 60 minute chart below.

You can see a broad head and shoulders pattern which indicates that supply is increasing. That is in perfect alignment with our bias from the larger timeframe.

So, now we have a bias from the larger timeframe (in this case the daily) which tells us to be bearish and a pattern from the smaller timeframe (in this case the hourly) which is in alignment.

Now we find an entry.

The chart above shows the entry I was looking to take would be on the break of support. The stop would go above the prior pivot high with an initial target of 102.50ish.

Fast forward an hour…

The pattern played out beautifully and our initial target was hit for a quick 70+ pip gain.

Trading is about staying objective and putting the pieces of the puzzle together.

Join me this Thursday, September 8 for a FREE webinar where will talk about how Forex can help you make more money.

P.S.- looking at the daily chart, this could just be the start of a longer term move lower in USDJPY