USDJPY - Overview on 4hr Timeframe - Buy Opportunities
Following our daily timeframe analysis (www.tradingview.com/...-on-Daily-Timeframe/), we believe that the time is ripe for the
USDJPY
pair to commence it's long awaited impulse to the upside.
As we are monitoring this pair with extreme attention, we are noticing that the pair has already made, on the 4hr timeframe, what we could consider a first small impulse to the upside. Whether we don't know if this is the actual start of the big expected movement that will take the pair in the 122 - 124 area, we are certain that from now on all buy setups should be taken.
Structurally speaking therefore, we cannot fail to notice that, following the aforementioned small impulse, the pair seems to me forming an "abc" corrective structure, which would indicate a buy opportunity at "c". At times, however, these structures tend to make "abc" corrections in the shape of contracting, or irregular flat, rather than regular flats that are easier to identify and foresee.
For this reason, we have marked the hypothetical regular flat structure with a continuous pink like, and the irregular flat structure with a dotted pink like, for your reference. Please notice that, as it stands now, both scenarios could be valid.
In terms of potential buy strategies therefore, one needs to monitor price action carefully: watch for ending diagonals or similar price structures on this and smaller timeframes that would indicate the end of the correction for a buy. For a more conservative approach, put a buy stop order on the break of the corrective structure's trend, with a stop loss below the structure itself.
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.
USDJPY
pair to commence it's long awaited impulse to the upside. As we are monitoring this pair with extreme attention, we are noticing that the pair has already made, on the 4hr timeframe, what we could consider a first small impulse to the upside. Whether we don't know if this is the actual start of the big expected movement that will take the pair in the 122 - 124 area, we are certain that from now on all buy setups should be taken.
Structurally speaking therefore, we cannot fail to notice that, following the aforementioned small impulse, the pair seems to me forming an "abc" corrective structure, which would indicate a buy opportunity at "c". At times, however, these structures tend to make "abc" corrections in the shape of contracting, or irregular flat, rather than regular flats that are easier to identify and foresee.
For this reason, we have marked the hypothetical regular flat structure with a continuous pink like, and the irregular flat structure with a dotted pink like, for your reference. Please notice that, as it stands now, both scenarios could be valid.
In terms of potential buy strategies therefore, one needs to monitor price action carefully: watch for ending diagonals or similar price structures on this and smaller timeframes that would indicate the end of the correction for a buy. For a more conservative approach, put a buy stop order on the break of the corrective structure's trend, with a stop loss below the structure itself.
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:
Structure on the 4hr timeframe has turned out to be different from the one we were seeing at the time this analysis was published. Luckily, the price never broke the trend (yellow dotted line), so we never took the trade. Structurally speaking we were seeing the first small impulse to the upside as an impulse, therefore we were expecting a correction to the downside before the impulse would have resumed and as it was forming, this structure seemed to be taking the shape of a regular flat for more upside. However, as the pair was going down impulsively, which is why you should always wait for a proper setup instead of entering a trade randomly, it was clear that what we initially saw as an impulse turned out to be instead the "a" leg of a contracting flat for more downside. As the pair has broken the low, the pair could go down further in a movement similar in entity to the previous downward impulse. However, having already broken the low, we also know that the structure is now complete and does not necessarily have to go down further, which is why from now on we will be looking for buy setups and buying massively on this pair, considering the upside impulse we are expecting to happen soon on the daily timeframe, which is bound to take USDJPY to the 122-123 area.
Comment:
