- Before anything, I would like to say the less aggressive way to take this position in my opinion would be to wait for this to break and retest the lower high/previous resistance, as shown in the chart.
- RSI oversold on 1H time frame
- Most likely will need to correct on the 4h timeframe, possibly to the 20 period moving average on 4H (again, high risk unless you wait)
- Pair may reject the area of interest, as shown on the chart. This is a big resistance on 4H time frame (I show this chart on 1H, so you may have to open up the chart yourself to see the full credibility of the resistance).
- Additionally, I am taking this position because fundamentally, in my opinion, USD isn't looking as strong as JPY.
- RSI oversold on 1H time frame
- Most likely will need to correct on the 4h timeframe, possibly to the 20 period moving average on 4H (again, high risk unless you wait)
- Pair may reject the area of interest, as shown on the chart. This is a big resistance on 4H time frame (I show this chart on 1H, so you may have to open up the chart yourself to see the full credibility of the resistance).
- Additionally, I am taking this position because fundamentally, in my opinion, USD isn't looking as strong as JPY.