USD/JPY has rallied to fresh highs, fade-n-scalp opportunity

Bloomberg's article circulated the wires as the Tokyo session opened that reported on President Xi Jinping's and Russian leader Vladimir Putin's plans to attend a Group of 20 summit in the resort island of Bali later this year, Indonesian President Joko Widodo said.

This sent the US dollar higher but has offered an opportunity to fade the news from a seriously good-looking area of resistance on the daily chart.

The following analysis should be taken as a cue for a sell set-up, but traders need to engage only at the right timings.

This could develop in the European open for instance and we will want to see a peak formation place prior to a move into the low-hanging fruit to the downside.

Some pointers - check for bearish structure, double tops for instance and make sure the price has broken the support line.

A sell limit once the trendline is broken and a structure point has been clearly taken out would be the ideal way to engage on a pullback into resistance. the video should give some clues as to how this could be approached for the European day ahead. Bonne chance!

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Bond markets catching up with the noise and US dollar running on fumes with china prepared to let the yuan fall, geo politics, Fed hawks and so on ... there is nothing to do here still and Im updating the prospects of a correction as follows

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H1 chart...while the price can still go higher, when correction comes, we can be targeting a break of structure. Of course, this is not a forecast of how the schematic will play out, but it is the foundation for the basis of a typical setup ...

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On a micro scale, from within the resistance... 5 min chart

Trade active:

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projected price action...

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the price action was forecasted correctly, now just need this candle to close below support for a breakeven position

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2 mins to go, looks like it wants to close below...

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now at breakeven, and here is the new price trajectory forcast

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stopped out at breakeven for a well risk managed example

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entering again on 1 min, will explain the thesis, but based on overall bearish playbook as per original higher time frame analysis

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ive tried to call out of the reasons for a re-entry. basically, the overall bias is bearish across the lower time frames given the price action and peak formations being formed. the price made a lower high and mitigated a price imbalance around the point of control of the last bearish impulse. the stop loss is at the prior double top peak formation highs, so the thesis is that the lower high signifies buyers were running out of steam ...however, as i update, they are back in....stopped out...

Trade closed: stop reached:

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This was too premature, USDJPY is trying to move higher still .... what A RUN!!!!

SO WE KEEP MONITORING FOR THE NEXT TOPPING FORMATION... STAY TUNED