Potential short setup on the USDJPY.
A potential short trade opportunity could arise if the ongoing local rally loses momentum, causing a break of the rising broadening channel. In this scenario, it will be crucial to observe whether the pair convincingly breaks below the Point of Control (POC) level, as this could confirm the validity of the short setup.
On the other hand, there is an alternative scenario to consider. If USDJPY gains momentum and approaches the 139.600 range, a significant breakout above this level might occur. However, should the pair fail to break out of this range, it could signal an even more substantial potential short setup.
Always remember to exercise caution and perform thorough analysis before executing any trades. Market conditions can change rapidly, and risk management should be a priority in your trading strategy.
A potential short trade opportunity could arise if the ongoing local rally loses momentum, causing a break of the rising broadening channel. In this scenario, it will be crucial to observe whether the pair convincingly breaks below the Point of Control (POC) level, as this could confirm the validity of the short setup.
On the other hand, there is an alternative scenario to consider. If USDJPY gains momentum and approaches the 139.600 range, a significant breakout above this level might occur. However, should the pair fail to break out of this range, it could signal an even more substantial potential short setup.
Always remember to exercise caution and perform thorough analysis before executing any trades. Market conditions can change rapidly, and risk management should be a priority in your trading strategy.
Trade closed: target reached:
Managed to get multiple trades out of this range.
One was a stop order that got triggered and didn't end well.
The rest went like a charm.
One was a stop order that got triggered and didn't end well.
The rest went like a charm.
Notably, the fixed volume analysis cross the entire range and from recent top to top, indicates strong interest at the 138.50 range. A few key observations stand out:
The market structure appears to be forming an inverse head and shoulders pattern, along with a clear rising wedge.
Remarkably, the majority of the volume has been concentrated at the tops, particularly during the recent top, while the lows saw relatively lower volume.
Price action has been forming noticeable higher highs and higher lows, which underscores its significance.
The current dive in the POC range is worth watching closely. If it bounces from this as support, there is a good chance that price might rally towards the 139.60 range. However, should a potential break on the downside occur, followed by potentially an unsuccessful retest, a short setup could be in play.
Today's Asian session could see increased volume as banks return from a holiday. Additionally, late in the session, there will be news data released.
-Tertiary Industry Activity m/m - which may impact market dynamics, but is known as a not so high impact indicator on FX, but rather an indicator on economic outlook.