In this case with we have only one problem. Before it gets validated it has to fall a lot: obviously we'll know if it becomes a only when and if it trades below 122,30. Until we see more confirmation this is just a theory and one possibility, so let's check other details in depth.
- setup above Kumo, but this time we do not have such a strong momentum. Supports are ard: 123+, and most importantly 122,30.
- A reversal would also validate the pattern (requires a break below 122,30)
- Heikin Ashi signals hesitation and a possible pull back ( swing) ahead. haDelta/SMA3 struggles to stay above zero line, actually crossed down below zero. HA oscillator also turns . Anyway from only daily candle it is hard to tell wether we really see a swing or if it will go up again to test 125+ once more.
If someone is long, should trail stop loss to the PSAR level ard 123,90.
- Neutral setup, Price trades in the Kumo cloud, exactly at short term equilibrium: future Senkou B, 100 and Kijun Sen.
- Heikin Ashi looks to turn possibly again at important supp/res levels, but we need to wait for this candle close and haDelta/SMA3 to confirm.
- More momentum gain would happen below 123,95. For conservative traders that is the ultimate level to watch for a short entry.
Please note also that the of this pair has become extremely low. So make sure you adjust your position sizing and stops according to ATR.