Don't trust USDJPY....she lies. DONT BUY THE TRIANGLE
We have USDJPY breaking out of a bullish pennant on the 5min/15min chart.....I'M NOT BUYING IT.
I don't trust it. Here is why.
Let's start from the most important part, our bias. I still believe price is searching for 105.05. Right now it still hasn't made me a non believer.
I'm thinking the banks still have orders sitting there they need to close.
For that reason I'm bearish.
The Red Rectangle - This i a rotation, the banks built a position, spiked up, then continued lower during the Asia open last night.
The Purple Zone - on the H1 it is a bullish engulfing then a reversal down, its just another variation of confirmation on the H! for us. look to sell in the purple zone.
Banker Mentality - Buy why people sell, sell when people buy.
With the banker mentality we should be looking to sell at the red line retest (biggest volume price)
I think they could be baiting people long right now with this pennant, it has whipsawed and triggered people twice, BUT it made equal lows on the bottom portion, which means when the untested buy orders get triggered, people should use those equal lows as their support/protection. Their stops should be sitting their and will make for a great intra day target, if you have the balls, hold until 105.05.
I'm already done trading for the day, but this setup is still good practice to observe and study.
Not saying its 100% dropping but I would be cautious, if you are buying just off this triangle.
There is also an algorithmic pattern completing at the red line, but that is a topic for another time, not trying to clutter the chart right now (banks use algos)
I don't trust it. Here is why.
Let's start from the most important part, our bias. I still believe price is searching for 105.05. Right now it still hasn't made me a non believer.
I'm thinking the banks still have orders sitting there they need to close.
For that reason I'm bearish.
The Red Rectangle - This i a rotation, the banks built a position, spiked up, then continued lower during the Asia open last night.
The Purple Zone - on the H1 it is a bullish engulfing then a reversal down, its just another variation of confirmation on the H! for us. look to sell in the purple zone.
Banker Mentality - Buy why people sell, sell when people buy.
With the banker mentality we should be looking to sell at the red line retest (biggest volume price)
I think they could be baiting people long right now with this pennant, it has whipsawed and triggered people twice, BUT it made equal lows on the bottom portion, which means when the untested buy orders get triggered, people should use those equal lows as their support/protection. Their stops should be sitting their and will make for a great intra day target, if you have the balls, hold until 105.05.
I'm already done trading for the day, but this setup is still good practice to observe and study.
Not saying its 100% dropping but I would be cautious, if you are buying just off this triangle.
There is also an algorithmic pattern completing at the red line, but that is a topic for another time, not trying to clutter the chart right now (banks use algos)