JasperForex
Short

USDJPY: Bearish Gartley After a Strong US Jobs Report

FX:USDJPY   U.S. Dollar/Japanese Yen
This pair rose strongly after a higher than expected non-farm payroll number came out (257K) together with a favourable wage gain percentage (0.5%). Because of this strength in US the labour market, the USD immediately became bullish , driving USDJPY             up 185 pips. This moved the price of this pair above the B point of a potential bearish Gartley on the 4H and now this set up qualifies as a “trade candidate” and goes on my watch list. Price has already travelled 80% of the way from C to D.

When defining the potential reversal zone (PRZ) for a Gartley pattern , we look at the projection of three harmonic levels. I: the 786 retracement of XA, II: an AB = CD pattern and III: a BC             expansion converging in the same area (in this case 1414 BC             ). This defines a tight zone, about 22 pips wide, represented by the orange lines in the chart. There is also some structure in this zone, which increases the edge of a reversal. Should price action test the PRZ and reverse convincingly, I would enter short. SL goes 10 pips behind the next resistance level. TP1 = 382 retracement of AD and TP2 = 618 retracement of AD.

There are 235 pips to be made (if this pair follows the script) and the trade has a reward-risk ratio of 2.2!

UPDATE 1: Price is testing the PRZ.
UPDATE 2: PA did exceed the PRZ somewhat, but did not invalidate the Gartley and quickly reversed. I entered short at the lower limit of the PRZ and am currently 92 pips in this trade, which I am holding over the weekend.
UPDATE3: PA hit TP1 and I took profit on 1 position for 142 pips. I rolled SL into profit, so from now on I have a risk free, profitable trade. The trade management of the second position has become a management of profit. Lets see how far it can reach!
You don´t need to be a weatherman to know which way the wind blows - B. Dylan

Related Ideas

Update: price is testing the PRZ.
+1 Reply
UPDATE 2: PA did exceed the PRZ somewhat, but did not invalidate the Gartley and quickly reversed. I entered short at the lower limit of the PRZ and am currently 92 pips in this trade, which I am holding over the weekend.
+1 Reply
DanV MOD JasperForex
2 years ago
Great job. Thanks for sharing.
+1 Reply
JasperForex PRO DanV
2 years ago
Well it missed TP1 by 9 pips on Friday. It better keep dropping lol.
+1 Reply
UPDATE3: PA hit TP1 and I took profit on 1 position for 142 pips. I rolled SL into profit, so from now on I have a risk free, profitable trade. The trade management of the second position has become a management of profit. Lets see how far it can reach!
+1 Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out