We have seen this time and time again, the USDJPY blasts off bullish, consolidates in the form of a pennant, and proceeds to shoot even higher.
I don't have any reason to believe this time will be any different. This pennant is reaching a nexus point and price action is coiling and tightening up to the point it's begging to spring. But having built a case for entry here, I found a zone near the projected base of the pennant/ resistance slope that had a cluster of major fib levels. If you look at the chart you'll notice I took them all off. Why? BECAUSE THERE ARE SO FRICKIN' MANY OF THEM, clustered in the one spot of the reversal zone.
Take me to task on this. Go ahead and pick a swing and draw a fib, a major fib will find itself within that zone.
This is an admittedly aggressive entry, but we're looking at a reward to risk of about 2.5 to 1 if we have entry orders resting at resistance slope of the pennant formation. I would wait till AFTER the market opens at 5:00PM to set the entry order, to ensure against any unseemly gaps. Look for RSI to go oversold in the PRZ. I'll take the top of the slope as a target, and see how we do tonight into tomorrow.
Stay thirsty my friends....
I don't have any reason to believe this time will be any different. This pennant is reaching a nexus point and price action is coiling and tightening up to the point it's begging to spring. But having built a case for entry here, I found a zone near the projected base of the pennant/ resistance slope that had a cluster of major fib levels. If you look at the chart you'll notice I took them all off. Why? BECAUSE THERE ARE SO FRICKIN' MANY OF THEM, clustered in the one spot of the reversal zone.
Take me to task on this. Go ahead and pick a swing and draw a fib, a major fib will find itself within that zone.
This is an admittedly aggressive entry, but we're looking at a reward to risk of about 2.5 to 1 if we have entry orders resting at resistance slope of the pennant formation. I would wait till AFTER the market opens at 5:00PM to set the entry order, to ensure against any unseemly gaps. Look for RSI to go oversold in the PRZ. I'll take the top of the slope as a target, and see how we do tonight into tomorrow.
Stay thirsty my friends....