USD/JPY Bullish Wolfe Wave vs. Bearish White Swan Pattern
Although it seems quite obvious that USD/JPY is heading down
again, especially after the bearish engulfing candle of the
past week on the weekly time frame, price 'may' still remain
high enough for a bullish trend continuation as long as the
107.200/00 level holds, which also conveniently is the 61.8%
retracement level. At the moment it is commendable to be
patient and wait and see which level holds to enter a trade.
A break below the 107.20/00 level though however would
expose a resumption of the overall bearish trend. Applying
the measured move of XC of the bearish White Swan
pattern, the measured target objective reaches the low
of Novembre, 2016.
Although this month is not yet over, a glance at the
monthly time frame reveals an inverted hammer pattern.
Hence, if price were to close between the 108.600 and
109.300 level this month, a moderate chance of further
momentum to the upside would be viable.
I personally would stay away from entering the market,
one because of the NFP data to be released this coming
Friday, and two because the 200SMA is flat-lining which
typically causes wild price fluctuations. A clear rejection
at the 200SMA level would be ideal to enter further shorts
combined with a close below the 107.200/00 level.
Trade 1 short (RvR ratio 2.68)
Entry: Close below 110.100/00
or conservatively a close below 108.80
S/L: 112.060 (or as desired if entering lower)
T/P 1: 108.812
T/P 2: 108.013
T/P 3: 107.214
T/P 4: 106.077
T/P 5: 104.629
Trade 2 short (RvR ratio 2:1)
Entry: Close below 104.629
S/L: 106.349
T/P 6: 101.190
As always, scale out your profits and adjust your stop/loss
levels to suit your risk management profile.
Happy trading
again, especially after the bearish engulfing candle of the
past week on the weekly time frame, price 'may' still remain
high enough for a bullish trend continuation as long as the
107.200/00 level holds, which also conveniently is the 61.8%
retracement level. At the moment it is commendable to be
patient and wait and see which level holds to enter a trade.
A break below the 107.20/00 level though however would
expose a resumption of the overall bearish trend. Applying
the measured move of XC of the bearish White Swan
pattern, the measured target objective reaches the low
of Novembre, 2016.
Although this month is not yet over, a glance at the
monthly time frame reveals an inverted hammer pattern.
Hence, if price were to close between the 108.600 and
109.300 level this month, a moderate chance of further
momentum to the upside would be viable.
I personally would stay away from entering the market,
one because of the NFP data to be released this coming
Friday, and two because the 200SMA is flat-lining which
typically causes wild price fluctuations. A clear rejection
at the 200SMA level would be ideal to enter further shorts
combined with a close below the 107.200/00 level.
Trade 1 short (RvR ratio 2.68)
Entry: Close below 110.100/00
or conservatively a close below 108.80
S/L: 112.060 (or as desired if entering lower)
T/P 1: 108.812
T/P 2: 108.013
T/P 3: 107.214
T/P 4: 106.077
T/P 5: 104.629
Trade 2 short (RvR ratio 2:1)
Entry: Close below 104.629
S/L: 106.349
T/P 6: 101.190
As always, scale out your profits and adjust your stop/loss
levels to suit your risk management profile.
Happy trading