### USD/JPY Key Points
- Higher time frame, USD/JPY bearish trend.
- Price below horizontal support turned resistance.
- Intraday wedge break lower at confluence of resistance
- Price never pushes through intraday resistance and gives multiple chances to short.
USD/JPY Technical Analysis
Morning team.
Everybody loves a winer, don't they!
So yesterday's USD/JPY short setup got shared around a bit on Twitter and I had a flood of new members join my Inner Circle email note.
For those of you that just joined, here's the key part of yesterday's USD/JPY analysis:
What we're looking at here is a beautiful confluence of resistance that looks ripe for shorting.
You can see the horizontal zone where price is retesting previous support as resistance. The fact that price poked its head through it to clear stops and then neatly has tucked back underneath it shows that we're definitely on the smart money side of the trade.
Price has now printed an ascending wedge which has also now broken to the downside. With price pulling back, this is your chance to take a step down another time frame or two and find areas of previous short term support that turn to resistance and to then manage your risk around those levels.
What's really cool, is that the market was kind enough to give you latecomers a number of chances to get short.
Take a look at the updated charts today:
So since the start of today's Asian session where the period separator on that second chart begins, you can see that price gave multiple chances to take the exact same entry as anyone that was trading it yesterday got.
Even cooler is that as you can see from where I've marked with the arrow, your stops could have been crazy tight. When you have tight stops, you're able to boost your lot sizes to trade huge size, while keeping your risk the same.
These last two USD/JPY analysis pieces have not only been highly profitable for anyone that took the trades, but also highly educational in showing how you don't have to be first in to still make money in trading.
Best of probabilities to you.
Dane.
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