I'm going to post a possible outcome of the USD/JPY within the next coming days. I think that after today, we got a pin bar or hammer, whichever you would like to call it ( presenting an upwards move), that we will see a movement upwards to at least the 115.50 area to the 116.00 area. This pin bar is in compliance with support formed through the usage of drawing out an effective trendline. This is an excellent opportunity to buy with minimal risk compared to the the reward involved. After the area of 115.50 to 116.00 is reached, I would be looking for an imminent reversal signal to the downside. Then we could be in for a fairly large drop in price. Does anyone have any thoughts on this? I would like to have posted a chart but I can't yet.

Now that I can post charts, I will and then I will explain on the post afterwards what is on this chart and how I use it effectively to trade.
This is a daily chart of the USD/JPY. If you will notice the support which has been created through the usage of the trendline PLUS the pin bar, hammer, or doji (whatever youd like to call it), this has created a solid trade. We will see how this pans out.

Attached Images

234564325543 j.gif (13.4 KB, 2 views)

The EMA's on this chart act as, more or less, dynamic fib levels. This entails that they create a great area of support and resistance for the pair. If anyone has any questions, feel free to go right ahead.

Hello Mike

I definitely agree with you, after I saw that hammer forming yesterday I thought today or tomorrow will be a good day to go long. I reckon this one will be good for at least 200 pips from the base.

Please let us know if you went long. I will try to look for a good opportunity and will keep you posted.

I had actually forgotten about this post, but the Usd/Jpy has moved down as I thought it would from the previous price. I closed out my short positions at 110.00, which was a fantastic profit from the 116 area.

I meant the 115 area. I stacked my shorts all the way down to my take profit. That is the magic of compounding your position. Instead of taking only a small profit, I took a huge one without any more risk. Free trades are always good trades.

Hello ther Mike and all,

Hey Mike, what technique do you use to compound your position?

thank you

may be mike u right may be.................