USD/JPY formed a couple of pins in the hourly forex chart earlier today around the 111.30 level, and it has retraced about 60-70 pips lower since then.

Considering the uptrend this forex pair has been in the entire week, I think that this is a good opportunity to open a buy forex signal/trade here.

For starters, the trend has been going up since Monday which makes this dive a mere retrace. Right now we are at the 110.70 level which was playing resistance in the last two days, and it is providing support right now.

Prior resistance has turned into support now.

About 15 pips below, we can see the 50 SMA (yellow) which is supposed to add some extra strength to that area.

Before I forget, the previous hourly candlestick formed a doji which is a reversal signal according to the candlestick trading strategy and this hourly candlestick is already starting to look bullish, so I think this is a good chart setup for longs.