UnknownUnicorn9610108

USDJPY No clear direction yet (Possible Inverse H&S for longs?

FX:USDJPY   U.S. Dollar / Japanese Yen
As marked on the chart, USDJPY is trapped in a consolidation range which seems to be a Wyckoff accumulation phase, which if true, it could mean that soon prices are expected to push higher. Another confluence, especially for chart pattern traders is that what seems to be an inverse head and shoulder has been printed on the daily chart. Not only that, but the 1 hour chart already printed a swing low candlestick formation higher that the previous low, which could indicate that it made a higher high on the lower timeframe (1 hour) which could indicate a shift on market structure to the bullish side. If you are an aggressive trader, a long position could be opened with a stop low right below the 109.670 area. For conservative traders that would like a proper direction of the market, a break of structure of either the resistance area or support area in this consolidation range is needed in order to get a bias of where price truly wants to go. The break of structure must be with a minimum of three to four candles or with a candle that shows high momentum to the other side and it has to close as minimum on the 4 hour timeframe in order to avoid any fakeouts. Entries could be taken on the pullback. Fibonnaci levels and market structure could be used as confluence to find your entries.
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