This is my first trade idea for 2010 and I hope it would be a profitable one.

My bias for this pair is on the long side but I wouldn’t mind taking advantage of retracements.  I already  shorted USDJPY at 92.17 and 92.5 which is within 61.8% and 78.6% range. Take a look at the chart below. USDJPY broke the uptrend line in the hourly chart then retraced back up to test that trendline which from support became resistance. I shorted near that area. For this trade my target is at 90.85.

Now let’s switch to the 4-hour chart. I drew another uptrend line which was tested 3 times and to make it more valid, MA(800) is just right below this support line and a bearish RSI divergence is present. Once the price closes below that support line, sell short at market price. Stop loss shoud be placed at 92.9. As for the target, you set your first target at 90.85 or just let your profits run until USDJPY reach 87.35. Adjust your stop to break even on 60pips profit or when 90.85 is hit.