My target for USDJPY last week got smash for the long and as I stated that price could be rallying up to make and a head and shoulders ready for the drop. As we can see on the daily time frame, price has finally broken out of the ascending wedge and is retesting the bottom trend line of the wedge formation. As it is retesting the broken wedge it is currently forming a perfect head and shoulders with last Friday's daily candle close showing a rejection off the left shoulders resistance area. Along with these confluences, all these confirmations for the short are also playing out right on the weekly 61.8% bearish fib.
Personally on a lower time frame I am looking for the 4 hourly price to rise to create a double top at 109.626 area before looking to get in for the short. On a daily time frame perspective this will wick fill last Friday's candle close.
For targets if we get a break of the neckline I will be looking for TP1 to be hit which is the duplication of the head and shoulders. (250 pips)
If price then progresses to go bearish then i will be looking for TP2 to be hit which is the duplication of the wedge range. (400 pips)
If we can get a nice entry then the risk to reward on this would be amazing....
Personally on a lower time frame I am looking for the 4 hourly price to rise to create a double top at 109.626 area before looking to get in for the short. On a daily time frame perspective this will wick fill last Friday's candle close.
For targets if we get a break of the neckline I will be looking for TP1 to be hit which is the duplication of the head and shoulders. (250 pips)
If price then progresses to go bearish then i will be looking for TP2 to be hit which is the duplication of the wedge range. (400 pips)
If we can get a nice entry then the risk to reward on this would be amazing....