The TRYJPY Close To Breaking Support

FX:TRYJPY   Turkish Lira/Japanese Yen
We last posted on the TRYJPY on April 10th when price was finding immediate support at the pivot low of March. The following bar did break and close below the pivot support this was short-lived. Price spent the latter part of April pulling back to the 50SMA where it found resistance.

The 50SMA is a significant level of support and resistance when price is in a trend and this is a perfect example. It also offers entry points into the trend and so this pullback to the 50SMA and the round number 27.00 resistance cluster would have offered just that, a short entry into the bear trend.

By giving price the space to move, we have stayed in our short trade and we are now looking to add further compounds. We first need to see price break and close below the support level of April that price is currently looking to push through.

If price does dictate the break and close, then we would want to see price continue to weaken in the direction of the bear trend towards the next round number of 20.00.

If the trend continues in the same structure as it did from the start of the year to the end of March, then we are in a fast moving trend structure and that is when breakouts will be the most likely entry points for compounds.

This is looking strong for a trend continuation but we need to apply patience and wait for the break below pivot support to be confirmed before we can place any more short trades.

Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!

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