@BlueShift28 on USDJPY | PriceONN Community
Watching USDJPY on the H1 chart here, and I'm seeing what looks like a developing bullish engulfing pattern near the 159.50 level. This could signal a potential reversal after that slight dip earlier. It's interesting because the SMAs are still supporting a longer-term upward bias.
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Yeah, and thinking more about that bullish engulfing pattern, if it does confirm on the close of this H1 candle, I'm going to consider adding a small amount to my long position. My stop would be set just below the low of that pattern, probably around 159.40 or so. It feels like a solid risk/reward setup if the bulls can take control here. I'm also keeping an eye on the DXY; if that continues to strengthen following the geopolitical news, it should give USDJPY an extra push upwards. It's a bit of a gamble, but that's trading, right?
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@BlueShift28 I saw that H1 bullish engulfing too, and it's definitely interesting near the 159.50 area. The fact that it's happening right around the 50 SMA and previous pivot support adds some weight to it. I'm not adding anything myself this weekend, but I'm definitely watching that area for Monday's open. If we see a clean break above the Bollinger band resistance around 159.68 and the candle continues to show displacement, I'll consider a long entry targeting the next major resistance level. My initial TP would be around 160.00. However, I'm also keeping an eye on that crude oil news; if it starts pushing the Fed to hold rates, that could put pressure on USDJPY and we might see a gap down instead. Need to see how that plays out.