USD/JPY Potential short term, short setup...
Following on from my Forex Market Breakdown Volume 5, price seems to be following suit.
We continue to consolidate between hourly support and resistance sitting between 111.756 - 111.980. Previously short term support was broken and retested and price formed a potential short setup from this zone. However, this turned out to be a fake out and since then price has taken another dive into resistance although this doesn't look overly convincing.
We now sit at the 5th rejections of resistance following a strong bearish engulfing candle.
It is also important to mention the higher time frame confluences on this pair, 112.000 being a strong weekly level also coinciding with alternate weekly confluences which I will keep to myself. I have also marked on a strong daily level between 111.360 and 111.5000 highlighted by the blue zone. I believe this level will be retested and therefore this zone sits as my downside target.
With this in mind, we must firstly see a strong break below the hourly 50ema and hourly support zone. 111.756 sits as my first downside target and once broken its all eyes on 111.500.
Enjoy!
Instagram: www.instagram.com/nicklindleyfx/
We continue to consolidate between hourly support and resistance sitting between 111.756 - 111.980. Previously short term support was broken and retested and price formed a potential short setup from this zone. However, this turned out to be a fake out and since then price has taken another dive into resistance although this doesn't look overly convincing.
We now sit at the 5th rejections of resistance following a strong bearish engulfing candle.
It is also important to mention the higher time frame confluences on this pair, 112.000 being a strong weekly level also coinciding with alternate weekly confluences which I will keep to myself. I have also marked on a strong daily level between 111.360 and 111.5000 highlighted by the blue zone. I believe this level will be retested and therefore this zone sits as my downside target.
With this in mind, we must firstly see a strong break below the hourly 50ema and hourly support zone. 111.756 sits as my first downside target and once broken its all eyes on 111.500.
Enjoy!
Instagram: www.instagram.com/nicklindleyfx/
Trade closed: target reached