USDJPY is entering a interesting area that has been respected before. If we look to the past we can see that price has reversed here before. BUT this is just one level and big money will do everything to get people into the wrong side before they leave us hanging. So the level may be tested and also broken to the upside for a while only to turn when enough buy stops have been triggered.
Right now the Sentiment is still favorable to the upside. In the time of writing 72% of retail positions are SHORT
Sentiment analysis: This is a indication that price CAN GO HIGHER, but also the sentiment is usually in favor or the retails when market usually turn.
Conclution is this: IF this is the area we see a reversal and start to move lower we have the opportunity for a BIG move and can set us up for the year if played right. But I will be hedging my positions in case market breaks to the upside taking small gains in the upmove and adding to a bigger short position.
May you get the best Price!
Right now the Sentiment is still favorable to the upside. In the time of writing 72% of retail positions are SHORT
Sentiment analysis: This is a indication that price CAN GO HIGHER, but also the sentiment is usually in favor or the retails when market usually turn.
Conclution is this: IF this is the area we see a reversal and start to move lower we have the opportunity for a BIG move and can set us up for the year if played right. But I will be hedging my positions in case market breaks to the upside taking small gains in the upmove and adding to a bigger short position.
May you get the best Price!
But it in case they are playing for a bigger level I will be having a Buy stop with at every high to cover potential losses just in case.