by IFC Markets
USD/JPY currency pair on the daily chart
Here we consider the USD/JPY currency pair on the daily chart. 29 October 2014. The price is influenced by the daily uptrend, and after a slight retracement, we have all the more reason to believe in the bullish victory. The current price direction is confirmed by Parabolic historical values.
There is no contradiction on the part of RSI-Bars oscillator: its values are moving upwards within the bullish trend. We can wait for an additional confirmatory signal from Donchian Channel after the breakout of the last fractal price level at 108.353. It will be preceded by the last high crossing at 58.5870% on the oscillator chart.
It is recommended to use the level at 110.064 for placing a pending buy order. It is confirmed by the intersection with D1 and MN resistance lines and the Bill Williams fractal. When the price would cross the monthly resistance line, a strong bullish momentum is expected. Stop Loss is better to be placed at 105.163, which is strengthened by the intersection with the daily trend line, fractal and Parabolic historical values.
After position opening, Trailing Stop is to be moved after the Parabolic values, near the next fractal low. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.
Buy stop above 110.064
Stop loss below 105.163
Daily Technical Analysis by IFC Markets
Read previous articles by IFC Markets here
Return to IFC Markets Articles.