We are looking for a short opprotunity here. If we look at the H4 charts we can see that we have a nice long Bearish divergence on the MACD indicator. The RSI indicator is almost touching extreme levels. We also have stiff resistance at the psychological level 78. So what are we looking for? How can we join? Well I would like to see price reach this psychological level around 78 to complete the next divergence. I want to see price make a stop, what do I mean by stop? Create some kind of Bearish candle stick pattern and that will be the sign to sell. Target 1 will be the 20MA of the Bollinger bands and Target 2 will be the opposite boundary of the Bollinger bands.
USDJPY trade setup for 2012.02.13
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3