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USDJPY trade ideas

SELLing TREND started in USDJPY market, Broken the strong zone..📉 USDJPY Price Forecast 📉 USDJPY is currently at the top of the uptrend, experiencing significant consolidation within a range. The market has broken down the demand zone and also broken the ascending channel, confirming a shift in momentum. After the breakdown, the price retraced back to the channel, which has now become a strong resistance level. The price is also retracing the demand zone, and an order block is present at 156.15. Increased selling volume suggests that sellers are gaining control, and the price is approaching a potential breakdown near the 200 EMA. 🎯 Technical Target Levels: - 154.30 - 153.20 - 149.60 (Final target) 📌 Key Highlights: - Breakdown of the demand zone and ascending channel confirmed. - Price retracing to the order block at 156.15, preparing for further downside. - Increased selling volume supporting bearish momentum. - Near the 200 EMA, which may act as a strong resistance. ✅ Stay Ahead and Profitable! Like, comment, and follow for precise updates and actionable forecasts. Don’t miss the opportunity to trade this bearish move—be ready for the next big move! 🚀 📢 Join the community for expert analysis and consistent success! #USDJPY #ForexTrading #TechnicalAnalysis #TradingSignals
Short
by TrendLogic1
3
How Can You Trade with an Inverted Hammer Pattern?How Can You Trade with an Inverted Hammer Pattern? In trading, patterns are powerful tools, allowing traders to anticipate changes in trend direction. One such pattern is the inverted hammer, a formation often seen as a bullish signal following a downtrend. Recognising this pattern and understanding its implications can be crucial for traders looking to spot reversal opportunities. In this article, we will explore the meaning of inverted hammer candlestick, how to identify it on a price chart, and how traders can incorporate it into their trading strategies. What Is an Inverted Hammer? An inverted hammer is a candlestick pattern that appears at the end of a downtrend, typically signalling a potential bullish reversal. It has a distinct shape, with a small body at the lower end of the candle and a long upper wick that is at least twice the size of the body. This structure suggests that although sellers initially dominated, buyers stepped in, pushing prices higher before closing near the opening level. While the inverted hammer alone does not confirm a reversal, it’s often considered a sign of a possible trend change when followed by a bullish move on subsequent candles. The pattern can have any colour so that you can find a red inverted hammer candlestick or upside down green hammer. Although both will signal a bullish reversal, an inverted green hammer candle is believed to provide a stronger signal, reflecting the strength of bulls. One of the unique features of this pattern is that traders can apply it to various financial instruments, such as stocks, cryptocurrencies*, ETFs, indices, and forex, across different timeframes. To test strategies with an inverted hammer formation, head over to FXOpen and enjoy CFD trading in over 700 markets. Hammer vs Inverted Hammer The hammer and inverted hammer are both single-candle patterns that appear in downtrends and signal potential bullish reversals, but they have distinct formations and implications: - Hammer: The reversal hammer candle has a small body at the top with a long lower wick, indicating that buyers pushed prices back up after a period of selling pressure. This pattern shows that sellers were initially strong, but buyers regained control, potentially signalling a reversal. - Inverted Hammer: The inverted hammer, by contrast, has a small body at the bottom with a long upper wick. This structure indicates initial buying pressure, but sellers prevented a complete takeover. This pattern suggests that buyers may soon regain strength, hinting at a possible trend reversal. Both patterns signal possible bullish sentiment, but while the green or red hammer candlestick focuses on buyer strength after selling, the inverted hammer suggests buyer interest in an overall bearish context, needing further confirmation for a trend shift. How Traders Identify the Inverted Hammer Candlestick in Charts Although the inverted hammer is easy to recognise, there are some rules traders follow to increase the reliability of the reversal signal it provides. Step 1: Identify the Pattern in a Downtrend - Traders ensure the market is in a downtrend, as the inverted hammer is only significant when it appears after a period of sustained selling pressure. - Then, they look for a candlestick with a small body at the lower end and a long upper wick that’s at least twice the size of the body. This upper shadow shows initial buying pressure followed by selling, suggesting a potential reversal in sentiment. Step 2: Choose Appropriate Timeframes - The pattern can be seen across various timeframes, but daily and hourly charts are particularly popular for identifying it due to their balance of signals and reliability. - Higher timeframes charts generally provide more reliable patterns, while shorter timeframes, like 5 or 15-minute charts, might lead to more false signals. Step 3: Use Indicators to Strengthen Identification - Volume: A rise in bullish trading volume after the inverted hammer can indicate stronger interest from buyers, increasing the likelihood of a trend reversal. - Oscillators: Oscillators like Stochastic, Awesome Oscillator, or RSI showing an oversold reading alongside the candle can further suggest that the asset might be due for a reversal. Step 4: Look for Confirmation Signals - Gap-Up Opening: A gap-up opening in the next trading session indicates buyers stepping in, giving further weight to the bullish reversal. - Bullish Candle: Following the inverted hammer with a strong bullish candle confirms that buying pressure has continued. This is a key signal that a trend reversal may be underway. By following these steps and waiting for confirmation signals, traders can increase the reliability of the inverted hammer’s signals. Trading the Inverted Hammer Candlestick Pattern Trading the inverted hammer involves implementing a systematic approach to capitalise on potential bullish reversals. Here are some steps traders may consider when trading: - Identify the Inverted Hammer: Spot the setup on a price chart by following the rules discussed earlier. - Assess the Context: Analyse the broader market context and consider the pattern's location within the prevailing trend. Look for support levels, trendlines, or other significant price areas that could strengthen the reversal signal. - Set an Entry: Candlestick patterns don’t provide accurate entry and exit points as chart patterns or some indicators do. However, traders can consider some general rules. Usually, traders wait for at least several candles to be formed upwards after the pattern is formed. - Set Stop Loss and Take Profit Levels: The theory states that traders use a stop-loss order to limit potential losses if the trade doesn't go as anticipated. It may be placed below the low of the candlestick or based on a risk-reward ratio. The take-profit target might be placed at the next resistance level. Inverted Hammer Candlestick: Live Market Example The trader looks for a bullish inverted hammer on the USDJPY chart. After a subsequent downtrend, the inverted hammer provides a buying opportunity that aligns with the support level. They enter the market at the close of the inverted hammer candle and place a stop loss below the support level. Their take-profit target is at the next resistance level. A trader could implement a more conservative approach and wait for at least a few candles to form in the uptrend direction. However, as the pattern was formed at the 5-minute chart, a trader could lose a trading opportunity or enter the market with a poor risk-reward ratio. Advantages and Limitations of Using the Inverted Hammer The inverted hammer has its strengths and limitations. Here’s a closer look: Advantages - Simple to Identify: The pattern is easy to recognise on charts due to its unique shape, making it accessible for traders at all experience levels. - Can Be Spot in Different Markets: The candle can be found on charts of different assets across all timeframes. - Straightforward Trading Approach: It offers a straightforward signal that can be incorporated into broader trading strategies, especially with confirmation signals. Limitations - Reliability Depends on Confirmation: The candle alone does not guarantee a market reversal; it requires confirmation from the next candlestick or other indicators. Without this, the reversal signal may be weak. - Works Only in Strong Downtrends: The pattern might be more effective in strong downtrends; in ranging or weak trends, it generates less reliable signals. - False Signals Can Occur: False signals are possible, especially in volatile markets. Over-reliance on this pattern without additional analysis may lead to poor trade outcomes. Final Thoughts While the inverted hammer can provide valuable insights into potential trend reversals, it should not be the sole basis for trading decisions. It is important to supplement analysis with other technical indicators and tools to strengthen the overall trading strategy. Furthermore, effective risk management strategies are crucial while trading the setup. Setting appropriate stop-loss orders to limit potential losses and implementing proper position sizing techniques can help potentially mitigate risks and protect trading capital. If you are ready to develop your trading strategy, open an FXOpen account today to trade in over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50. Good luck! FAQ Is an Inverted Hammer Bullish? Yes, it is considered a bullish reversal pattern. It indicates a potential shift from a downtrend to an uptrend in the market. While it may seem counterintuitive due to its name, the setup suggests that buying pressure has overcome selling pressure and that bulls are gaining strength. How Do You Trade an Inverted Hammer? To trade an inverted hammer, traders wait for confirmation in the next session, such as a gap-up or strong bullish candle. They usually enter a buy position with a stop-loss below the low of the pattern to potentially manage risk and a take-profit level at the closest resistance level. Is the Inverted Hammer a Trend Reversal Signal? It is generally considered a potential trend reversal signal. An inverted hammer in a downtrend suggests a shift in market sentiment from bearish to bullish. An inverted hammer in an uptrend does not signify anything. What Happens After a Reverse Hammer Candlestick? After a reverse (or inverted) hammer candle, there may be a potential bullish reversal if confirmed by a strong bullish candle in the next session. However, without confirmation, the pattern alone does not guarantee a trend change. How Do You Trade an Inverted Hammer Candlestick in an Uptrend? In an uptrend, an inverted hammer isn’t generally considered significant because it’s primarily a reversal signal in a downtrend. Are Inverted Hammer and Shooting Star the Same? No, the inverted hammer and shooting star look similar but occur in opposite trends; the former appears in a downtrend as a bullish reversal signal, while the latter appears in an uptrend as a bearish reversal signal. What Is the Difference Between a Hanging Man and an Inverted Hammer? The hanging man and inverted hammer differ in both appearance and context. The former appears at the end of an uptrend as a bearish signal and has a small body and a long lower shadow, while the latter appears at the end of a downtrend as a bullish signal and has a small body and a long upper shadow. What Is the Difference Between a Red and Green Inverted Hammer? A green (bullish) inverted hammer candlestick closes higher than its opening price, indicating a stronger bullish sentiment. A red (bearish) inverted hammer candlestick closes lower than its opening, which might indicate less buying strength, but both colours can signal a reversal if followed by confirmation. *At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
USDJPY InsightHello, subscribers! I’m glad to have you all here. Please feel free to share your personal opinions in the comments. Don’t forget to like and subscribe! Key Points - U.S. President Donald Trump announced multiple executive orders during his inauguration, including declaring a national energy and border emergency, repealing mandatory electric vehicle adoption, and withdrawing from the Paris Climate Agreement. However, he postponed imposing tariffs on his first day, instead instructing the investigation of trade relations. - The market predicts potential price corrections depending on the progression of Trump’s tariff policies. - The Bank of Japan is expected to raise interest rates by 25 basis points at its rate decision meeting scheduled for January 23–24. This Week’s Key Economic Event + January 24: Bank of Japan Rate Decision USDJPY Chart Analysis In the recent decline, the pair broke through the support level and dropped to the 154.500 range. It is currently positioned at the lower end of the uptrend, suggesting a potential rebound. However, U.S. President Trump remains a significant factor that could impact the market, so the possibility of a trend reversal should not be ruled out. If the 154.500 range holds as a support, the pair could rise to the 162 range. Conversely, if it breaks below the 154.500 level, the next target could be the 149.000 range.
Long
by shawntime_academy
1
USD/JPY - Short Entry based on Price action MACD and RSI DivThis is going to be my first published trade of 2025. I am going to start with $100 Dollar Account and see how I can grow it with Low Leverage on OANDA. I know this is something people talk a lot about and this can be a very cringe topic. However I am not looking to grow the $100 Dollars over night to $1,000,000.00. I am like the indicators I am using looking to do this over a longer horizon of time. I am going to start by using Price action plus these 3 Indicators on a regular basis. I Will also be trying to Identify and use Key areas of Support and Resistance. I am still trying to better understand volume profiles so if anyone has any inputs or can help guide me in that direction I am open to discussions. Thanks for reading.
Short
by Iam4KvisionOG
2
USD/JPY Under Pressure: Yen Strengthens Amid Bearish MomentumThe USD/JPY pair exhibits a clear bearish inclination, driven by a combination of economic and market factors that are strengthening the Japanese Yen and weakening the US Dollar. Currently, the pair has dropped to approximately 155.60, recording a 0.44% loss for the day, with sellers evidently attempting to push the price further toward critical support levels between 154.90 and 153.15. The downward pressure is amplified by rising expectations of a rate hike by the Bank of Japan, further supported by recent positive data such as improvements in Japan’s core machinery orders, signaling a recovery in capital expenditure. Simultaneously, uncertainty surrounding the economic policies of the Trump administration contributes to a negative climate for the US Dollar, which is already under pressure from a recent slowdown in buying flows. From a technical perspective, the pair has encountered significant resistance in the 156.55-156.60 region, a level that halted previous recovery attempts and now acts as a key barrier. For a meaningful trend reversal, a sustained breakout above this resistance, followed by consolidation above 157.00, would be necessary to pave the way toward recent highs at 158.00 or even 158.85. However, the likelihood of a downward breakout seems more tangible, considering that the support at 155.25 represents the last defense before a drop toward the psychological level of 155.00 and further toward 154.60 and 153.30. The current market environment, characterized by reduced trading volumes due to Martin Luther King Jr. Day in the US, suggests caution for traders, as dynamics could quickly shift with the return of liquidity and the announcement of potential monetary or political decisions in both Japan and the US. The combination of positive economic data for Japan and expectations of higher rates positions the Yen in a place of strength, while the Dollar may continue to struggle without a clear positive catalyst. Holding below 155.00 would be a significant signal for bears, indicating an extended downward trajectory toward deeper support levels.
Short
by Forex48_TradingAcademy
1
USDJPY Technical Analysis: Support, Breakout, and RetestUSDJPY has recently exhibited a bullish breakout pattern, breaking above a key resistance level. This breakout, followed by a retest of the broken level, presents a potential buying opportunity for traders. A clear support level has been identified at 155.200 The recent breakout occurred above a significant resistance level at 156.00 The price decisively broke above the resistance level, indicating a shift in market sentiment. A subsequent retest of the broken resistance level (now acting as support) provides a potential entry point for buyers. Stop-Loss: Place a stop-loss order below the recent swing low at 155.00 to manage risk. Take-Profit: Set a take-profit target at 157.00 which could be a previous swing high or a key resistance level. Disclaimer : This analysis is for informational purposes only and should not be considered financial advice. Trading involves significant risk, and you should carefully consider your investment objectives, risk tolerance, and financial situation before making any trading decisions.
Long
by SOM_FX1
1
Bullish bounce?USD/JPY is falling towards the support level which is an overlap support and could bounce from this level to our take profit. Entry: 155.02 Why we like it: There is an overlap support level. Stop loss: 154.19 Why we like it: There is a pullback support level that aligns with the 138.2% Fibonacci extension. Take profit: 156.61 Why we like it: There is an overlap resistance level. Enjoying your TradingView experience? Review us! Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Long
by VantageMarkets
USDJPY SHORT Below is a structured, professional top-down analysis of USD/JPY, incorporating the key technical elements from weekly down to the 1-hour timeframe, as well as brief macro considerations. All references to specific price levels, indicators, and potential trade setups are included for clarity. Weekly Timeframe • Ascending Channel • USD/JPY has been trading within a broader ascending channel. After briefly breaking below on July 29, price re-entered this channel around October 7 and continues to respect it. • The overall structure has consistently formed higher highs and higher lows, though price is currently at a lower high within the channel. • EMAs & Bollinger Bands • The 20, 50, 100 EMAs on the weekly chart slope upward and are stacked in a bullish configuration, indicating a larger uptrend. • Price remains in the upper Bollinger band, reflecting underlying strength; however, the bands are widening, implying potential for increased volatility. • Momentum & Capital Flows • RSI is above 50 but is currently testing its RSI-based moving average as well as an RSI trendline. A break below could signal deeper weekly correction, although the broader trend remains bullish. • MACD is above zero and bullish but shows signs of weakening momentum near the top. • CMF (Chaikin Money Flow) remains positive, suggesting steady capital inflows despite the recent consolidation. • Macro Context • The interest rate differential favors the U.S. dollar unless the Bank of Japan unexpectedly raises rates (e.g., on October 23). Even with a potential BOJ hike, the overall USD yield advantage may persist unless there is a significant policy shift. Weekly Conclusion The higher timeframe bias is bullish. However, the pair appears to be in a corrective phase (wave 4) within that broader trend, potentially setting up a wave 5 push that could break prior highs, pending confirmation on lower timeframes. Daily Timeframe • Rising Wedge / Channel • On the daily chart, USD/JPY has formed a rising wedge-like structure. Price is currently near 155, with potential downside toward 154 if selling pressure continues. • A cluster of support is found around the lower channel boundary, the 100 EMA, and various Fibonacci retracement levels (0.382 and 0.5). • EMAs & Bollinger Bands • The daily 20, 50, and 100 EMAs remain upward sloping, consistent with a larger bullish bias. • Price has dipped below the 20 EMA, finding intermittent support at the 50 EMA. A decisive reclaim of the 20 EMA could drive a retest of upper channel resistance. Failure to do so may open further downside toward the 100 EMA. • Currently trading near the lower Bollinger band, indicating near-term weakness on the daily timeframe. • Ichimoku • Price remains well above a thick Ichimoku Cloud, suggesting strong long-term support. However, there may be room for further downside before interacting with the Cloud. • Momentum Indicators • RSI sits below 50, indicating a short-term bearish tone. • MACD is in a bearish phase, aligning with the current pullback. • CMF remains positive but is starting to decline, hinting that outflows may briefly exceed inflows. Daily Conclusion The daily structure is still within a larger bullish trend but is undergoing a corrective pullback. A deeper move to the lower boundary of the rising wedge or channel (and possibly the 0.5 Fibonacci retracement) is plausible before resuming the broader uptrend. 4-Hour Timeframe • Bearish Sub-Structure & Order Blocks • After rejecting near 156, price has formed a short-term downtrend channel/structure on the 4H. A clear order block around 154.427 aligns with the lower portion of this channel. • A bounce from that zone could complete the corrective phase before resuming the daily uptrend. • EMAs & Momentum • Price is oscillating around the 200 EMA on the 4H chart. Recent attempts to break below were quickly reversed, but so far, the short-term trend remains bearish. • RSI is below 50, confirming a short-term downward bias. • MACD shows waning bullish momentum, consistent with further downside risk toward support levels. • Potential Short Setup • A retest of the 156 region (daily order block/high-value node) could provide an attractive risk-to-reward short entry targeting ~154.427 or slightly below, contingent on bearish rejection signals. • Tight stop placement above 156.40 – 156.70 helps manage risk in case of an unexpected breakout to the upside. 4-Hour Conclusion The 4H timeframe supports a tactical short opportunity within a broader uptrend. Ideally, traders would wait for a retest of upper resistance to secure a better entry, aiming to catch the final leg of this correction. 1-Hour Timeframe • Minor Trendlines & Bearish Break • The 1H chart confirms multiple breakouts of smaller ascending trendlines, each followed by a retest and a bearish engulfing candle, signaling near-term downward continuation. • Short-term order blocks around 156.39–156.74 may offer entries if price retests them. • ATR Considerations • Current 1H ATR is roughly 0.261, which suggests stops should accommodate the typical volatility. • A proposed entry around 156.3925 with a stop near 156.738 targets the 154.36–154.42 zone, resulting in a risk-to-reward around 2:1, assuming precise trade management and no major fundamental surprises. 1-Hour Conclusion The intraday structure remains bearish, with well-defined levels for a potential short entry. Traders should confirm momentum exhaustion on any retest of 156+ before committing to the position. Overall Synthesis & Next Steps • Weekly Bias: Bullish • Daily & Intraday Bias: Short-term bearish correction • Key Levels: • Upside: 156.00–156.40 (potential retest/short entry zone) • Downside: ~154.40 (4H order block / channel support), possibly 153.70 if momentum accelerates • Trade Approach: • Short Setup: A bounce into 156+ with bearish rejection could offer a compelling short entry. • Longer-Term Upside: Once the correction completes around the 154 region (or slightly lower), look for bullish signals to rejoin the weekly uptrend targeting new highs. Note: Always keep an eye on the macro calendar—particularly interest rate announcements from the Bank of Japan and the Federal Reserve—as they can shift USD/JPY momentum rapidly. Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions can change quickly, and it is vital to employ proper risk management.
Short
by EliteMarketAnalysis
1
USD/JPY calm in holiday tradeThe yen is almost unchanged on Monday. In the European session, USD/JPY is trading at 156.37, up 0.06% on the day. We can expect a quiet day, as the US observes Martin Luther King Day and Donald Trump will be sworn in as President. The yen is coming off a busy week, with sharp swings on each of the past three trading days. The Japanese currency gained 0.95% last week, its best week since November. Still, USD/JPY remains high and investors are anxiously awaiting the Bank of Japan rate decision on Jan. 24. There are no tier-1 releases out of Japan this week but investors will be busy keeping an eye on the Bank of Japan rate decision on Friday. The central bank tends not to telegraph its intentions but has hinted at a rate hike and the market will be on the lookout for any hints or signals from BoJ policy makers ahead of the rate decision. The BoJ is widely expected to raise rates to 0.50%, which would be the highest level since the 2008 global financial crisis. After decades of deflation and an ultra-loose monetary policy, inflation has taken root and the BoJ is slowly moving towards normalization. Inflation has been above the BoJ's 2% target for almost three years and higher wage growth means that inflation should remain sustainable as it moves higher. The weak yen is another reason for the BoJ to raise rates and make the yen more attractive to investors. The big question mark is Donald Trump, whose has promised tariffs on US trading partners, which threatens to shake up the financial markets and damage Japan's crucial export sector. The Trump factor is unlikely to prevent a rate hike this week, but supports the case for the BoJ to wait several months before delivering another rate hike. USD/JPY tested support at 155.88 earlier. Below, there is support at 155.39 There is resistance at 156.79 and 157.28
by OANDA
USDJPY Is Very Bearish! Sell! Please, check our technical outlook for USDJPY. Time Frame: 12h Current Trend: Bearish Sentiment: Overbought (based on 7-period RSI) Forecast: Bearish The market is on a crucial zone of supply 156.291. The above-mentioned technicals clearly indicate the dominance of sellers on the market. I recommend shorting the instrument, aiming at 154.540 level. P.S Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all. Like and subscribe and comment my ideas if you enjoy them!
Short
by SignalProvider
1
Buy Trade Idea: USD/JPY USD/JPY is currently showing signs of bullish momentum after bouncing off a key support zone near 154.00. The price has retested this significant demand zone and demonstrated rejection, indicating a potential reversal to the upside. Entry: 155.50 Stop Loss (SL): 154.00 Take Profit (TP): 161.50 As the trade progresses, price action should be monitored closely. Stop Loss adjustments can be made to break-even or to secure profits as the price approaches the TP level. This setup offers a favorable risk-to-reward ratio (RRR) of approximately 1:3, making it a sound trade from a risk management perspective. This trade setup is based on a combination of technical analysis, fundamental analysis, investor sentiment, and retail sentiment.
Long
by Trade_Navigator010
USDJPY Short USD/JPY Short Trade Analysis This trade is purely structure-based, as I do not trade news events like Inauguration Day. My focus is entirely on price action and market structure. The market recently dipped below the structural level at 156.310, signaling a potential bearish continuation. Currently, it's forming its Outside Return (OR)—a pullback that aligns with the broader downtrend. My target for this trade is the next key support level at 154.551, consistent with the ongoing bearish sentiment. Staying true to market structure and ignoring news helps me maintain a disciplined and objective trading strategy.
Short
by AlexanderPlant