USDJPY Long Opportunity in large 400+ pip consolidation range
Price tested the back of the down trendline on the Weekly Time Frame on 2016.07.04 & 2016.08.15 thus forming a double bottom and identifying the Fibbonaci 'C' retracement. This in turn helped identify the target D Extension at 156.711.
On the Daily however price is caught at a traffic light so to speak as price is in a 484 pip consolidation range where price is testing support.
Look for buying opportunity on the 60min time frame and lower which could be any combination of the following: (Bullish candle stick formations at support, Head and Shoulders/Kings Crown, counter trend line breaks, Stocastic making a U-Turn in the buy zone etc). However you choose entries with your trading plan.
On the Daily however price is caught at a traffic light so to speak as price is in a 484 pip consolidation range where price is testing support.
Look for buying opportunity on the 60min time frame and lower which could be any combination of the following: (Bullish candle stick formations at support, Head and Shoulders/Kings Crown, counter trend line breaks, Stocastic making a U-Turn in the buy zone etc). However you choose entries with your trading plan.
Comment:
On the Daily price has broken the 484 pip consolidation range heading south. The Long Term bias is still bullish however the current correction will control the trend bearish on smaller time frames.