Look beyond ordinary analysis
USDJPY finally found some resistance around 118.30 area. The pair formed our favourite pattern = double top + lower low. This is an excellent bearish reversal pattern. On the top of this, JPY seasonal bullishness is also at play. JPY tends to gain value in the first 3 weeks of the trading year – every year.
I have been expecting a correction after an aggressive rally. As the price formed a double top and a lower low, the pair is ready for more decline. NFP rally is a perfect storm to establish some shorts here.
Sell USDJPY at 117.25. This is 61% Fibonacci retracement from the current low during overbought stochastics.
Trade: Sell Limit
Stop Loss in Pips: 150
Take profit in pips: open
Risk of Equity: 3%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: Yes
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Not clear to me
Is this trade with the trend?: Reversal
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Yes
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: Yes
Where is the price in terms of Pivots Points?: Resistance
Moved to break even. Take profit moved to 113.50
Moved take profit to 115.50 booking 170 pips profit.
Moved take profit to 1.1450, booking 270 pips profit.
325 total views, 19 views today
326 total views, 20 views today