USD/JPY - 4hr Chart Trend Scanner & Momentum
The 4hr trend scanner currently looks bearish and has not given signal to intermediate upside yet. Indicators are showing signs of intermediate momentum bearish with short term momentum oversold and needing a minor bullish pullback. If we get the pullback I am expecting price action to respect the major wedge trendline and embed another head and shoulders. If we were to embed the H/S it would consolidate price into the major news happening later in the week which would give confluence to the technical and the news.
If price does re-test the wedge upper trendline it could put us very close to breakout zones to upside. So confirmation of the breakdown H/S and continuation of the current intermediate momentum needs to happen before short is active. Closes below minor trendlines trend scanners will dictate direction of the intermediate momentum which I will be following closely. It is also likely that price could break out early in the week and then pull back sharply with the news down to wedge tip. It is typical for fractal cycles to break out of wedge wave 1 and pull back sharp wave 2 to the tip of the wedge when continuing a major impulse.
There are a few harmonics forming which have finished point C and are looking for direction to D. The major news this week should give a direction and an idea of which harmonic will play out. Fib levels and harmonics coincide in both directions and confirmation is needed to determine which one will play out.
Price action is at a very pivotal location in the fractal cycle and soon there will be a nice extended impulse out of this consolidation. Looking for confirmation of direction is advised before entering either long or short for swings or long term positions. Scalping the consolidating waves is still giving room for decent range and price action has showed respect to the wedge in the past. Moving forward into this week I will be scalping the short term waves within this intermediate momentum.
At times like this when we are approaching the tip of a wedge it is important to understand the possibility of an unexpected move in either direction. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist
If price does re-test the wedge upper trendline it could put us very close to breakout zones to upside. So confirmation of the breakdown H/S and continuation of the current intermediate momentum needs to happen before short is active. Closes below minor trendlines trend scanners will dictate direction of the intermediate momentum which I will be following closely. It is also likely that price could break out early in the week and then pull back sharply with the news down to wedge tip. It is typical for fractal cycles to break out of wedge wave 1 and pull back sharp wave 2 to the tip of the wedge when continuing a major impulse.
There are a few harmonics forming which have finished point C and are looking for direction to D. The major news this week should give a direction and an idea of which harmonic will play out. Fib levels and harmonics coincide in both directions and confirmation is needed to determine which one will play out.
Price action is at a very pivotal location in the fractal cycle and soon there will be a nice extended impulse out of this consolidation. Looking for confirmation of direction is advised before entering either long or short for swings or long term positions. Scalping the consolidating waves is still giving room for decent range and price action has showed respect to the wedge in the past. Moving forward into this week I will be scalping the short term waves within this intermediate momentum.
At times like this when we are approaching the tip of a wedge it is important to understand the possibility of an unexpected move in either direction. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist