SGDJPY has just formed a on the 1-hour timeframe with significant confluence as price-action has reached the upper of SGDJPY's current .
The potential reversal zone (PRZ) is comprised of 3 ratios:
4.23 BC projection at 81.813
1.618 XA projection at 81.793
3.14 alternate at 81.776.
Stop loss is set at the 2.0 XA projection, or 82.034.
Take profit is set at two levels, management and final.
The management level is the 0.382 AD retracement, or 81.406
The final level is the 0.618 AD retracement, or 81.168
The terminal price bar has just formed, confirming all three ratios.
Price is also trading in an that has formed as of the 8th of January, and the terminal price bar has not only confirmed the PRZ of the but also reached the upper of the channel, creating a strong indication of a possible reversal downwards to occur.
has also reached overbought territory on the 4-hour, indicating a long term overbought state of the pair.
As always, analyze price action as well for more confluence of a reversal!
Thanks for reading,
I am watching the foreign investment into JPY stocks closely right now and seeing market reaction.
If price action forms some sort of bullish reversal formation I will consider taking 50% profit and then letting the rest of the trade run.
Result of foreign investment into JPY stocks was an improvement:
-102.0B actual, -124.0B previous.