Here’s another one that I’m looking at this evening. Just as with the previous highlight, the long EURUSD entry, this one goes against my overarching fundamental bias for the currencies involved. The chart below illustrates the pin bar I’m watching in the dollar yen.
As illustrated, the pin has formed across today’s session at what looks to be long term major resistance. As far as daily candlestick setups go, this is top drawer. A solid long term key level, a what looks like it’s going to be a perfect bearish pin and – as a nice kicker – a reasonably conservative target that should prove a quick turnaround if the pattern plays out as expected.
The above mentioned bias makes me a little bit wary heading into the position – the US dollar is not going to weaken for any sustained period of time and this is very much a contrarian/short term punt, but price suggests the entry is valid, so we’ll take and see how things play out.
So, if the day closes out of New York in a similar position as it stands right now, I’ll be looking at short entry towards somewhere in the region of the 102.8 mark, with a stop at 104.9 to manage my upside risk on the trade.
As ever, I’ll update on entry and outcome.