Long

USDJPY - Buy the Breakout Move!

Updated

You can see the move out of the support area of the 6 Day Rolling Pivot Range and Weekly Pivot Range. This is called the Pivot Stack. The closely associated pivot ranges provide a stacked range of support that is stronger together than if the pivot ranges were separated and much farther apart.

*See the Legend below for the Indicator Guide*

After a dip, the price has remained above the Daily Pivot Range (DPR) which is key to see the near term bias holding to the long side. You can enter here as we are approaching the latter hours of the session and strength in price seems to be holding.

A more conservative approach would be to wait until the end of the session to determine an entry, once we see at what level the DPR is at for the new session. This will be the key determinant as to whether or not to go long as there is still a possibility the price could correct back below the current DPR level which would turn the near term bias to bearish.

If the next session's DPR is below the opening price this will be a continued bullish bias and a good time to enter long.

Good crossovers with the DPMAs turning upward which of course is bullish.

Will update as we move forward in time.

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Indicator Legend:
Daily Pivot Range-DPR (blue/magenta dots) | Weekly Pivot Range-WPR (orange/red dots) | Monthly Pivot Range-MPR (green/black dots)
6 Day Rolling Pivot Range-RPR (lime/yellow dots)
Daily Pivot Moving Averages-DPMA: red=14 day, yellow=30 day, white=50 day

Note

The new session has opened and the DPR is below the opening price. As you can see this provided a pop to the upside with the clear bias as bullish. That's the power of these pivots - shows you clearly what action to take depending upon where they are situated. see the 60M chart

Note

Here's the Daily view:

Note

The way in which the price finished up on Friday left us with an inverted hammer, which in this case is almost a shooting star formation in the uptrend. This could usher in an opening with a gap to the downside.

If that happens I wouldn't panic. Just be sure to manage the trade by setting a stop once the market opens. You will need to see what are the new Daily Pivots and the 6 Day RPR in order to have a good level to choose for a stop loss.

I will give the latest pivot points here after the market open or you can sign up for the indicators here: virtuestrading.com/pricing/

Note

Well we did have a gap open to the downside but a small gap. The opening price was just above the DPR high of the previous session, then moved up from there. The next DPR is due out at the 0900 hour UTC for the start of the new week, in about 2 1/2 hours. The updated 6 Day RPR will also come out at this time. I will post an updated chart or two so you can see the updated indicators and their location on the charts.

Note

The DPR has come up nicely, trailing the current price with the Weekly Pivot Range just underneath the DPR. This is a Pivot Stack and the trend looks encouraging as well as the DPMAs turned up and extending their reach.
**Reminder to see the Legend in the first part of this study for all the names of the indicators.** You can also download them by signing up here: virtuestrading.com/pricing/

Note

With the trend continuing we have seen daily up moves for 5 days in a row. This is about the time you will want to watch out for a correction.

Time is the most important variable in trading and the amount of time that has past without a down day is reaching the point that we have to expect it's appearance. Raise your stops to under the DPR low for a tight stop. If you want to hang on for the longer term, keep your stop loss just under the 6 Day RPR low.

Note

Here's the latest chart update showing the indicators

Note

So we got the down day correction which allowed the market to cool a bit. This setup the move that we see continuing into tomorrow's session (Sept 28), which has come off the favorable US GDP news. For now, keep the stop loss just under the 6 Day RPR as we are at the last day of the month and we shall see a new WPR and MPR come Monday. Should be interesting!

Note

OK, so here's our new MPR and WPR and they are nicely supportive. I would place our stop loss just under the 6 Day RPR low at 112.490.

We've had a good run and it's tempting to take profits before what you might convince yourself is about to happen...namely a correction. But it's important to maintain discipline and let the market do its "trendy thing".

We do not know what is going to happen...no predictions here...ever. We just know to let our indicators do the talking and follow our rules, which in this case is to trail the stop loss to the 6 Day RPR low, which is the most reasonable level for this particular trade, at this particular juncture. Peace to you!

Note

We got the minor correction as anticipated. The new 6 Day RPR is out and we can now move the stop loss to just underneath the low of the range at 112.850

Note

The latest 6 Day RPR low is 113.015 so we can put the new stop loss at 112.980 below the handle price of 113.00 even. Handle prices typically have strong support and resistance due to the psychological nature we humans put at such even numbers:)

chris333

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