The_Greek_Trader

USD ON BULLISH MODE BUT WHAT WILL HAPPEN ON RESISTANCE(PART 2)!

Short
FX:USDJPY   U.S. Dollar / Japanese Yen
The US dollar drifted a bit lower against the Japanese yen during trading on Friday, perhaps recognizing that we had been a bit overbought. I think the ¥114 level makes perfect sense as a bit of resistance, but I also see the ¥113 level underneath as massive support. Overall, the market should continue to be very choppy but with a bullish attitude as the interest rate differential between the central banks warrants a higher price. Overall, I believe that the market continues to see a lot of volatility but I think these pullbacks should be buying opportunities. The ¥113 level should be massive in its implication of support, just as the ¥114.50 level above should be resistance. The ¥114.50 level is the beginning of massive resistance to the ¥115 level, which is a major round number, and clearing that could open up a massive amount of volume into the market going higher.

Once we do clear the ¥115 level, the next target would be the ¥118.50 level, perhaps extending to the ¥120 level. Overall, this is a market that continues to be one that offers value occasionally, you should look at these dips as just that: value.You MUST BE CAREFUL ON SHORTING for a long term or counting on a change of trend as it is obviously very bullish and we have had a confirmation of interest rates going higher in the United States recently. That should continue to propel this market higher even though the Bank of Japan is trying to cut back a bit on quantitative easing.

TECHNICAL OBSERVATIONS
1.We can see on 1 hour and 4 hours chart the head and shoulders pattern which implies a deeper pullback and a change of the trend but short-term.
2.We can also see that ichimoku clouds are only broken to the downside on the 1 hour chart at the 4 hours and daily charts are still offering a very good support for the uptrend.
3.Lately we have higher selling volumes and a change of sentiment towards the shorting side.
4.We also notice the black ascending line which protects the uptrend and it's very well respected from price action.

POSSIBLE SHORT TRADE
ENTRY AT 113.600-113.580 AT THE BREAK OF THE NECK LINE OF H&S PATTERN AND THE BREAK OF ASCENDING BLACK LINE FOR DOUBLE CONFIRMATION
BUY STOP AT 114.20
FIRST TARGET AT 113.00$LEVEL
SECOND TARGET AT 112.150$ LEVEL
THANKS FOR SUPPORT!!KEEP FOLLOWING FOR MORE PROFITS!!
PLEASE DO NOT HESITATE TO COMMENT LEAVE YOUR OPINION OR ASK ANYTHING!!

Trade active
Trade closed: target reached
Trade closed: target reached: Second target reached..WELL DONE GUYS...!

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