January 30th 2021
Despite the wet cold and grim weather outside (not to mention the lockdown) here in London there seems to be some ray of hope. We have seen USDJPY spike higher this week.
It gives us traders a sign of relief after the currency pair was seen heading south since March 2020.
Well, it has broken the long trend line (4 hour chart) and after this week's breakout , it looks like its ready to head north now.
Important Levels: Price could pull back to previous support area 104.38 only to reach higher highs to its next level 105.206 which could be a nice target to achieve
What is a Trend Line:
Trend lines are lines that we draw on a charts to connect the higher highs ( on uptrend) and higher lows ( for downtrend). It shows us where price ( price action) is going . IN the above chart, we see USDJPY moving down.
How to draw a Trend Line?
Look to draw a straight line touching at least 3 higher highs (for uptrend) and 3 lower lows for down trend).
ForexDiva Trading Tip For Beginners:
In order to draw a trend correctly, the line has to touch 3 price point for it to form a trend going up or down. Any less touches than 3 is a forming or a tentative trend line.
Till next time...
Trade well, trade responsibly!
"The most important investment you can make is educating yourself."- Warren Buffett