Yen Near Support, Breaking Out
In the last post, we suggested to buy USD/JPY in case low volume down bars (no-supply bars) showed up near the previous resistance level at 111.8. Many low volume down bars appeared at those prices (point 1), which provided the entry opportunity. The prices didn’t break 111 to the downside, and so, we maintained our bullish view of the market.
The trade was closed in point 2, on a supply sign. It was also getting near the previous selling zone at 113.5, and it ended up being the starting point for a reversal.
After a brief correction and low volumes on the bottom, the prices kept on rising and soon reached the long-term resistances at 113.8, and 114.5. A breakout of this last resistance at 114.5 (point 3) could provide another long opportunity, as long as one is alert for potential reversal signs, as the trend is already somewhat extended.