swissmoneymakers

USDJPY - More Bearish Power - Price making "healthy" correction

Short
FX:USDJPY   U.S. Dollar / Japanese Yen
Hi Traders!
The market is in an overall Downtrend.
This MTFA is going to analyse the TFs:
W1 - D1 - H4 - H1

Let's begin it with the weekly Timeframe:



As you can see we here have a descending Parallel Channel.
In addition we also have another descending Trendline.
The former 105.000 Support - now Resistance - is broken and this is an important factor
for considering the next movements.

Let's continue with the Daily TF:


In this screenshot we can analyse the situation more accurate.
Here, the market is in a Retracement-Move, because it is not making lower lows at this moment.
It is rather in a Triangle instead of a Downtrend after the Break of the Key Level 105.000.

This is "healthy" for the Trend to continue, because it needs Retracement-Moves and Trending-Moves alternating.
The reason is simple.

One Question: Which Trend will hold longer?
  • A: The price rallyes up 20 pips and then it retraces for 10 pips.
    Then it rallyes again 25 pips and retraces 15 pips.
    Than it rallyes 50 pips and retraces 20 pips.
    Lastly it rallyes 20 pips and retraces for 10 pips.
    Altogether it moved up for 60 pips.

  • B: The price shooted 60 pips up at once!

    So, if you think the trend of "A" holds longer, than you're absolutely right!
    The "B" situation is also comparable to Bitcoin, which moved all the way up at once and fell back again.

    Continuing with the H4-TF:


    Here we compared the Bearish directly to the Bullish Power.
    As you can see, the difference between the first High to the current high is 137 pips.
    But the difference between the First Low to the current Low is just 53 pips.
    So, the bearish power is 2.5 times stronger than the bullish power.
    That's why we are looking for a Sell Trade.

    Last but not least, the H1-Timeframe:


    Here you can see a similar Triangle like we saw on the Daily.
    In this case, it broke out.
    Now we wait for a Retest to protect us from a False-Break (many say "Fake-Out").
    The first TP is at the Support at 104.000.
    The second TP is at the Bottom at 103.240.


    We recommend to trade the Pattern in combination with a Candlestick Pattern.




    Thanks and successful Trading :)!



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