USDJPY has reached a long-term trend line with a confluence of a strong reaction level. After that we saw a bullish engulfing on the H8 and H12 chart indicating a trend reversal. Now I believe we can still see a break of these lows to 110.300 and then a rally up or now bullish continuation. A break of the trend line and bearish continuation is also not excluded, I have taken this trade with great caution and strict risk management.
So far, (today – July 25th) we see good progress on the H12. we are in profit and now we have to see a break of the 200 EMA.
Also we need to wait for the daily to close, if we see a three pin pattern which is now forming, we can anticipate bullish continuation and it would be safe to add on to the trade.
The Daily did in fact closed perfectly, we have a nice three pin pattern formed with a rejection of a key level, I believe we will see bulish continuation from this point, however tomorrow (July 26) we have lots of news for the US economy so trade on your own terms.