USDJPY: Bullish Momentum Lifting Pair Back Towards Upside Target of 1.2200 Where Resistance May be Tested
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 near 120.36 around time of publication today.
Last time USDJPY was reviewed in Ideas You Can Trade, earlier this month a triangle pattern had nearly completed and a break-out had subsequently followed. Since then support was found just under 117.00 and has since lifted the pair higher.
If the bullish momentum that has resumed continues, then 1.2200 should be the next upside target where the December 7th High may be rested.
Below are example of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 120.73 with a Limit to take profit @ 121.78 and a stop-loss @ 119.99 Risk/Reward Summary: Limit risk = 105 pips profit / (-74) Stop-loss risk = Gain to Loss ratio = 1.41
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 118.95 with a Limit to take profit @ 118.05 and a stop-loss @ 119.55 Risk/Reward Summary: Limit risk = 90 pips profit / (-60) Stop-loss risk = Gain to Loss Ratio = 1.50
Medium Term Daily Candle Chart: