USDJPY is always one of my favorite pairs to trade. It seems to respect the rules of technical analysis most of the time.
We can see a previous support/resistance level at the 107.16 mark. PA broke below that a few days ago and is now retesting which leads me to believe its going to drop more.
PA is below the 200ma which increases our odds of a profitable short position as well.
I'm going to wait for a candlestick confirmation and more than likely jump in this one soon.
My SL is just above the previous lows, that way if PA decides to rise it has to get through that resistance zone before it gets triggered.
Remember, always practice risk management and never risk more than a couple %.
We can see a previous support/resistance level at the 107.16 mark. PA broke below that a few days ago and is now retesting which leads me to believe its going to drop more.
PA is below the 200ma which increases our odds of a profitable short position as well.
I'm going to wait for a candlestick confirmation and more than likely jump in this one soon.
My SL is just above the previous lows, that way if PA decides to rise it has to get through that resistance zone before it gets triggered.
Remember, always practice risk management and never risk more than a couple %.