Confessions of a Forex Trader

I like to see the market trading near long term support or resistance levels, this way I can map the short term support and resistance level it needs to break in order to start looking for trading opportunities.

The USDJPY right now trading just above the long term support level at 94.55, take a look at the chart below:

USDJPY

So here is my plan:

As long as the market keeps trading above the short term resistance level (95.13) I will look for long opportunities. An eventual break should take the market to 96.22

As long as the market keeps trading below the short term support level (94.61) I will look for short opportunities. An eventual break should take the market to 92.14

If the market keeps trading in between the short term range 95.13 and 94.61 I will do nothing.

Good luck!

Raul Lopez

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The USDJPY is trading in a short term range in between 95.01 and 94.41 (green lines). The market usually creates this range when it approaches to a long term level, in this case a support level at 94.53 (center blue line). Please take a look at the chart below:

USDJPY

So here is my plan:

If the market breaks the short term resistance level 95.01, I will look for long opportunities and set all take profits level below 96.21 (long term resistance level – upper blue line).

If the market breaks the short term support level 94.42, I will look for short opportunities and will set all take profits levels above 94.14 (long term support level – lower blue line).

Good luck!

Raul Lopez

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