Critical Price Area Reached - Is A SELL-OFF Imminent?
We have now reached a critical area as the price approaches the 184 level, which marks the beginning of the Monthly SUPPLY/SELL level I discussed in my previous post. This area was I expected to be a target for bulls, although I anticipated a correction before reaching this level, which has not happened yet.
The 184 level holds key significance as it also represents the 50% Fibonacci retracement on the monthly charts from the decline between 2007 and 2009.
Considering the fact that we are currently highly overbought and witnessing a slowdown in momentum, with price quickly being sold off after each new high, coupled with divergence signals on the daily charts, a significant correction seems imminent.
My expectation now is for one more rally above 184, followed by a swift sell-off and a daily close below this level. I will be patiently waiting for a sell signal on my TRFX indicator to enter the market.
The potential for a significant sell-off in this pair is substantial, with my target levels for this idea being 177 and below, while the previous weekly swing high at 172 could also act as a price magnet. These targets are based on higher timeframes, so they may take time to materialize, although intervention by the BOJ could expedite the process.
If we were to continue moving higher, it would require a solid breakout above 184 and a daily close beyond this level. This could potentially lead to a deeper move into the Monthly SUPPLY/SELL zone. However, given the current price levels, I would exercise caution when considering buying positions.
Hope you enjoyed the post
The 184 level holds key significance as it also represents the 50% Fibonacci retracement on the monthly charts from the decline between 2007 and 2009.
Considering the fact that we are currently highly overbought and witnessing a slowdown in momentum, with price quickly being sold off after each new high, coupled with divergence signals on the daily charts, a significant correction seems imminent.
My expectation now is for one more rally above 184, followed by a swift sell-off and a daily close below this level. I will be patiently waiting for a sell signal on my TRFX indicator to enter the market.
The potential for a significant sell-off in this pair is substantial, with my target levels for this idea being 177 and below, while the previous weekly swing high at 172 could also act as a price magnet. These targets are based on higher timeframes, so they may take time to materialize, although intervention by the BOJ could expedite the process.
If we were to continue moving higher, it would require a solid breakout above 184 and a daily close beyond this level. This could potentially lead to a deeper move into the Monthly SUPPLY/SELL zone. However, given the current price levels, I would exercise caution when considering buying positions.
Hope you enjoyed the post
Trade active:
As expected we got the fake breakout above 184 and the rapid break down under that level I was waiting for the daily close under 184 because of the speed of the breakdown in price and my indicator give me a signal on the 6 hour chart entering @ 183.6
I will be taking profit and moving the stop as the market moves down.
I will be taking profit and moving the stop as the market moves down.
Trade active:
Stop loss is tight on this position and have put it @ 184.6
Comment:
Trade moving nicely I have closed 50% of the position and moved stop loss 183.8 we should see a breakdown in price from here :)
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