A strong uptrend in USDJPY during the American session is expected to be reversed during the Asian session. USDJPY is to trade below the resistance aqua color downtrend line. As the close is higher than the open and above the pivot point yesterday, I expected that the early session the cross is either moving around the pivot point or the opening price.
As normally I have done, I started scanning the chart at the open of Asian session i.e GMT 23:00 or 24:00 on the chart.
Refer to the 1 min chart below.
USDJPY was nibbling between the almost flat 200 ema and the opening price for a range of 10 pips for the first hour. At 1:37 (0:37 GMT) the cross manage to break through the previous swing high at 93.73 . I expected that the cross will came to a resistance of the downward trend line (aqua color). At 1:51 the cross reversed before touching the downtrend line with a engulfing candle that had it open price outside the BB outer boundary and confirmed with RSI (3) crossing the 85 level. At 1:56 Stealth Buy & Sell (B&Y) turn red and the blue lag cross the 85 level signaling for me to enter short. 1 min later the 6 ema cross over the 12 ema from above. I entered the short trade at 93.73. The first target at 93.63 is the opening price which was reached 10 mins later but since the Stealth LCD is still red in color and the two ema cross the 50 sma, I maintained my position with target profit at 76.4% retracement - 93.51
With a profit of 22 pips, I intended to take a counter trend trade. At 2:43 B&Y turned green and 6 ema crossed over 12 ema indicating a buy. The blue lag has crossed the 15 level about 3 min earlier. My target is for 10 pips profit. Closed my position when the price could not overcome the resistance of 200 ema. My profit was only 6 pips.
At 2:59 the B&Y and LCD turned red, a sell signal with the blue lag cross the 85 level three mins earlier. Closed and reversed my position as the B&Y, LCD and the 6 ema crossed 12 ema. The blue lag crossed the 15 level with the red lag still tagging the 100 level indicating the bullish sentiment is in control. The price crossed the opening price i.e the price I entered long with target price at the downtrend aqua line. I closed out at 93.73 for a ten pips profit. Within 1 hour and 15 mins trade I had my 30+ pips and I quit for the session.
