USDJPY Counter Trend & Possible Start Of Short Term Bear Market
USDJPY had a magnificent rally that lasted over 6-weeks.
Unfortunately, nothing last forever and trends have a short-term span.
I first noticed the pair going into a possible consolidation once it hit YTD highs and rejected it on 08/29/2023.
Price was already showing struggle to break higher from the beginning of this month and been in a 3-week consolidation.
I first look to take a short to range lows around 145.00, then will liquidate my positions and be in cash until further evidence of selling pressure is confirmed.
We could get a bounce from 145.00 support, a false breakout back to monthly highs or a possible continuation south to test monthly lows.
I am not here to predict the price moves, just going with my evidence and prepared for a possible false move against my position at any time so trailing-stop losses will be applied as the market continues in my favor for as long as the trend goes on.
My only concern is that price is struggling to break below 145.70 which is a conflicting support that I wish to see taken out in the next several hours or my sells will start to be in question.
Worst case scenario is that my entry is stopped out due to irregular market conditions and whipsaws around back to 146.50 which is the current 2-day range going on in real-time.
If that happens then I will close out my sell positions and be neutral as the market would be in the most unfavorable condition and I do not want to tie my margin into something not going as planned.
Unfortunately, nothing last forever and trends have a short-term span.
I first noticed the pair going into a possible consolidation once it hit YTD highs and rejected it on 08/29/2023.
Price was already showing struggle to break higher from the beginning of this month and been in a 3-week consolidation.
I first look to take a short to range lows around 145.00, then will liquidate my positions and be in cash until further evidence of selling pressure is confirmed.
We could get a bounce from 145.00 support, a false breakout back to monthly highs or a possible continuation south to test monthly lows.
I am not here to predict the price moves, just going with my evidence and prepared for a possible false move against my position at any time so trailing-stop losses will be applied as the market continues in my favor for as long as the trend goes on.
My only concern is that price is struggling to break below 145.70 which is a conflicting support that I wish to see taken out in the next several hours or my sells will start to be in question.
Worst case scenario is that my entry is stopped out due to irregular market conditions and whipsaws around back to 146.50 which is the current 2-day range going on in real-time.
If that happens then I will close out my sell positions and be neutral as the market would be in the most unfavorable condition and I do not want to tie my margin into something not going as planned.