USDJPY - H1 Potential Descending Wedge
There is a Potential Descending Wedge forming on the hourly chart of
USDJPY
. We could get take a couple plays with this one.
If we get a bounce at the mild support line at 111.700, then we could place a LONG looking to retrace back to the descending wedge upper trend line. With this LONG we would place a tight stop of 5 - 15 pips in case support breaks. Upon and bounce and retracement toward the descending wedge upper trend line, we could look to take profit at the upper trend line or, if descending wedge upper trend line is broken, hole the LONG until we reach our BULL TARGET at 112.200.
If price is rejected at the descending wedge upper trend line after the bounce, we could close our LONG position and place a SHORT with the potential of a pull back to the previous support at 111.700. This would be our first SHORT TARGET- 111.700. If the support at 111.700 is broken, then we could leave our SHORT position open to run down to our BEAR TARGET at 111.385.
Couple ideas! We will be watching this chart develop over the next couple sessions to determine how to play this one. Overall sentiment is currently BEARISH, so we prefer to SHORT this pair off the upper trend line, but a short term bounce isn't out of the question for a potential LONG.
Published 10/15/17
USDJPY
. We could get take a couple plays with this one. If we get a bounce at the mild support line at 111.700, then we could place a LONG looking to retrace back to the descending wedge upper trend line. With this LONG we would place a tight stop of 5 - 15 pips in case support breaks. Upon and bounce and retracement toward the descending wedge upper trend line, we could look to take profit at the upper trend line or, if descending wedge upper trend line is broken, hole the LONG until we reach our BULL TARGET at 112.200.
If price is rejected at the descending wedge upper trend line after the bounce, we could close our LONG position and place a SHORT with the potential of a pull back to the previous support at 111.700. This would be our first SHORT TARGET- 111.700. If the support at 111.700 is broken, then we could leave our SHORT position open to run down to our BEAR TARGET at 111.385.
Couple ideas! We will be watching this chart develop over the next couple sessions to determine how to play this one. Overall sentiment is currently BEARISH, so we prefer to SHORT this pair off the upper trend line, but a short term bounce isn't out of the question for a potential LONG.
Published 10/15/17
Trade closed: target reached:
Got the bounce and break we were looking for - BULL TARGET REACHED.