USDJPY Triangular Contraction April 30, 2017, Sunday
Observation:
Price was bullish (51 days) then starts losing momentum (19 days) consolidation, then starts to go bearish (117 days) and counting.
Using Fibo retracement, price bounce at 61.8% and counting.
Price forms a Triangular Contraction where Dynamic Resistance challenge Dynamic Support and market is pressured in the corner to make decision whether to go and test the Blue Box or Strong Support Area which is a sign of breaking the upward channel and Dynamic Support. Price may also respect Dynamic Support and breaks Dynamic Resistance which confirms a strong upward Channel.
Analysis:
If price breaks Dynamic Resistance with strong momentum & volume, Go for LONG.
If price breaks Dynamic Support with strong momentum & volume, Go for SHORT.
If price movement is weak, wait for more confirmation signals.
Conclusion:
Conservative Trader: Wait for more signals this week.
Aggressive Trader: Place Buy & Sell Stop with using Fib retracement 61.8% & give space out from Dynamic lines.
Price was bullish (51 days) then starts losing momentum (19 days) consolidation, then starts to go bearish (117 days) and counting.
Using Fibo retracement, price bounce at 61.8% and counting.
Price forms a Triangular Contraction where Dynamic Resistance challenge Dynamic Support and market is pressured in the corner to make decision whether to go and test the Blue Box or Strong Support Area which is a sign of breaking the upward channel and Dynamic Support. Price may also respect Dynamic Support and breaks Dynamic Resistance which confirms a strong upward Channel.
Analysis:
If price breaks Dynamic Resistance with strong momentum & volume, Go for LONG.
If price breaks Dynamic Support with strong momentum & volume, Go for SHORT.
If price movement is weak, wait for more confirmation signals.
Conclusion:
Conservative Trader: Wait for more signals this week.
Aggressive Trader: Place Buy & Sell Stop with using Fib retracement 61.8% & give space out from Dynamic lines.
Comment:
Price would probably bounce as it approach the Dynamic Resistance.