USDJPY, which has been in a range on the three-hour chart since December, just touched the bottom of that range at 91.10.(There’s additional support at 90.60.) This is a safe place to take a long position, given that the pair has been in an uptrend since November. I went long at 90.15. However, overall the pair is in a downtrend on the daily chart. What should also warrant caution is the failed breakout above the daily downtrend line. The pair is oversold on the hourly chart and just dipping into it on the three-hour chart. Here’s the three-hour chart:
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My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.