Following our daily overview and 4hr timeframe analysis (tradingview.com/chart/USDJPY/fX781h2L-USDJPY-4hr-Timeframe-Update-on-Buy-Opportunities/), we believe that OANDA:USDJPY could still be going for a major uptrend very soon. For the moment, the pair hasn't been going far or trending at all, in reality. However, not every uptrend begins impulsively, as some pick up strength after a slow start. We have to be ready therefore, as once this pair will take off, it will certainly go very fast. For those who aren't in the trade from the bottom, monitor closely now: the pair has broken to the downside what seems to be a leading diagonal pattern, but that does not invalidate the corrective structure so far, as it could still resume it's minor trend to the upside, completing a running flat pattern. From now on therefore, we will be looking for buy setups, on this pair: watch out for ending diagonal formations and other price action patterns for an entry point on their break. For a more conservative approach, wait for a first impulse to the upside, wait for a small correction of said impulse on the 60min timeframe, and buy the break of said correction with a stop loss beneath it.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button. Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down). Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
Comment
⋅
To all of those who are in the buys from our first or second entry points, congratulations! Watch it now, as the current correction could be developing in the shape of a small running flat, which would be another buy opportunity. However, the pair could also go for a deeper correction. Let's see which one plays out. Updates will follow.
@kyanmarco, Hello, thank you for your comment. At the moment, we are in the buy from the small expanding flat in the 105.36 area and until proven otherwise - that is until we see a major change in the structure, we are not looking to sell this pair, but only for buys. The pair formed what initially seemed to be a leading diagonal (pink), which would have been another confirmation for a new upside movement, but has broke it to the downside. This would indicate that the leading diagonal has been invalidated and that from now on, we should be looking for sells. After the price broke the leading diagonal to the downside, moreover, the pair corrected with what could appear as a running flat for more downside. However, what we don't much like of all said theory, is that the last movement to the downside on the 4hr timeframe, although it broke the leading diagonal, was not so impulsive, so there is still a chance that, instead of being in a leading diagonal, we were actually in a running flat for more upside (yellow). At the moment therefore, we are waiting: only if it breaks the low at 106.88 we will consider closing our buys in profit and eventually looking for sells. Regards,
TradingClear
⋅
@TradingClear, sorry, we meant to write "regular flat for more downside" (in bright blue).