Hey team,
After USD/JPY retested previous daily support as resistance yesterday, we got another confirmation touch today.
Take a look at the hourly chart below.
USD/JPY Hourly:
See the spike up right into the dead middle of our zone?
Yep, literally tested to the exact pip that we used to draw that line as support back in August 2020.
I haven't touched the chart, you can trace the trail back via my LeoFinance posts that I've been linking to in each USD/JPY post.
Come on, that's pretty cool, right?
Support/resistance is an amazing concept that should be the building blocks of all trading strategies.
It is a true reflection of human behaviour displayed as price action.
Intraday Trading Setup?
While plenty of support/resistance traders would happily aggressively sell immediately when price stalled on the daily zone, I always want confirmation.
Not so much confirmation that the zone is in fact holding, but more so that I have a clear short term zone to manage my risk around.
What this does is ensures all of the trades I take have an extremely high risk:reward ratio of at least 1:3.
As a result, I'm still waiting for a retest of short term support turned resistance on the hourly to enter.
Still waiting.
I know you want more, but unfortunately that's not how trading works.
Patience...
Best of probabilities to you,
Dane.
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