Hi traders, this analysis starts from higher timeframes. As you can see in the attached analysis i predicted usdjpy was coming to test this level some days ago. Now at this level we have a major structure daily level (black line) with a couple of fibonacci levels for confirmation. Another confirmation comes from RSI, that has a divergence on the last highs. In the daily chart we just exited a OVERBOUGHT condition. But all of those indicators are not enough, i want to see a reverse pattern made by price action. And there it is in form of an engulfing kicker on 4hr chart. Price is retracing a little bit offering us a better risk to reward ratio. Stop 1 atr above highest high, first target at 1:1. Second target along with structure.
If you have any question or opinion, don't be shy and comment below. Otherwise, see you in the next chart!
Trade closed: target reached
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First target hit! Moved stop at break even
Trade closed: target reached
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Second position out at break even. Total profit around 120 pips!
Comment
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And now price is about to retest the double top's top. Let's see if we could short the market again at that level.