Trading scenarios for Friday's Outside bar
$USDJPY couldn't gain momentum, last week, to continue higher towards the PRZ of the bearish Gartley
The price is back below the 200 SMA line and inside the top structure zone of the trading range it was
trading inside during Sep-Oct
The 120.5 zone is still support (changed role following the breakout) but the fact that the price is inside it,
brings back the uncertainty regarding future direction of $USDJPY.
As you can see from the chart, last Friday, $USDJPY created an Outside Bar pattern that may help you
decide how to act on this pair.
The rules of Outside Bars are simple – They are reversal patterns that trigger once the price either climbs
above their high or drops below their lows. In our case, the SMA lines, located near the Outside Bar's
high and low, can also help.
A close above 121.5 will signal that $USDJPY may continue to complete the bearish pattern near 123
A close below 120, may signal that $USDJPY intends to re-test the bottom of the trading range near 119.
This is a swing trader's nightmare, but perfect for day traders that look for some action on $USDJPY.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters - To read more interesting technical reviews for the week- goo.gl/jM5d1P
To subscribe to the newsletters - goo.gl/HXjCPV
The price is back below the 200 SMA line and inside the top structure zone of the trading range it was
trading inside during Sep-Oct
The 120.5 zone is still support (changed role following the breakout) but the fact that the price is inside it,
brings back the uncertainty regarding future direction of $USDJPY.
As you can see from the chart, last Friday, $USDJPY created an Outside Bar pattern that may help you
decide how to act on this pair.
The rules of Outside Bars are simple – They are reversal patterns that trigger once the price either climbs
above their high or drops below their lows. In our case, the SMA lines, located near the Outside Bar's
high and low, can also help.
A close above 121.5 will signal that $USDJPY may continue to complete the bearish pattern near 123
A close below 120, may signal that $USDJPY intends to re-test the bottom of the trading range near 119.
This is a swing trader's nightmare, but perfect for day traders that look for some action on $USDJPY.
Tomer, The MarketZone
This analysis is part of the Weekly Markets Analysis newsletters - To read more interesting technical reviews for the week- goo.gl/jM5d1P
To subscribe to the newsletters - goo.gl/HXjCPV
Comment:
Bullish setup reached target zone - Pattern is complete
