USD has been one of the weakest pairs of the Forex market recently, however, JPY has been even weaker and underperformed USD.
USDJPY has been trading under 108 since April.
The level has acted as resistant multiple times.
It looks like the price has made a massive inverse head and shoulders that just got completed by a break above the horizontal neckline at 108 which used to act as resistant.
The target of the inverse head and shoulders is around 110 however there is a minor level of resistant around 108.5 ish (the dashed horizontal) and anther resistant zone around 109 (the red box) between the current price and the head and shoulders target.
A pull back to the horizontal around 108 can be a good entry for this trade. The level should act as support now and you can manage your risk below the level.
This trade can provide a 2.5 risk to reward trade if it hits the first major resistant, it might aslo over shoot the level and hit the full messured move of the inverse head and shoulders but I don't want to get a head of my self and count on that before we break that level.
USDJPY has been trading under 108 since April.
The level has acted as resistant multiple times.
It looks like the price has made a massive inverse head and shoulders that just got completed by a break above the horizontal neckline at 108 which used to act as resistant.
The target of the inverse head and shoulders is around 110 however there is a minor level of resistant around 108.5 ish (the dashed horizontal) and anther resistant zone around 109 (the red box) between the current price and the head and shoulders target.
A pull back to the horizontal around 108 can be a good entry for this trade. The level should act as support now and you can manage your risk below the level.
This trade can provide a 2.5 risk to reward trade if it hits the first major resistant, it might aslo over shoot the level and hit the full messured move of the inverse head and shoulders but I don't want to get a head of my self and count on that before we break that level.
Comment:
Comment:
The target of the bull flag is around 110 ish which is really close to the main target of the head and shoulders.
a 1 hr close above 108.9 and retesting that level as support can be a good confirmation for the bull flag.
a 1 hr close above 108.9 and retesting that level as support can be a good confirmation for the bull flag.
Comment:
Comment:
reached the first important level of resistance and got rejected from it so far.
a high time frame close and confirmation above the red box can open the way for reaching swing target.
a high time frame close and confirmation above the red box can open the way for reaching swing target.
Comment:
Comment:
reached the first target and the first major resistant. not a bad place to bank some profits and leave the rest of the position to run to the targets around 110.
Comment:
Comment:
almost at 110 :)
looks good to continue to the final target of the inverse head and shoulders.
looks good to continue to the final target of the inverse head and shoulders.
Comment:
Comment:
The first 2 targets got hit but it failed to reach the 3rd price target. The red box failed to flip and act as support. Priced dumped through it like a hot knife through butter :P. trailing stop on the rest of the position got hit.
Trade closed: target reached
Comment:
+2R
However, it appears that it has managed to break above the minor resistance (108.5) and regain that level as support.
At the moment it looks like its making an ascending triangle bull flag which is a continuation pattern.