As some released news from the U.S. have been announced not as expected for a smoothing corporate tax cuts, hence the greenback lost its strength to push up USD/JPY to the 115.xx handle, and it is now struggling around its supply zone from 113.1xx-113.9xx. According to our technical point of view, that pair is currently trading in its corrective wave and a B leg should yet be being formed. There are two scenarios for that corrective trade that
1) The B leg will be ended at the 113.8xx handle and forms its the right shoulder pattern there. With this scenario, we can give USD/JPY a short/sell limit
2) Other scenario is that an extension for the B leg can be occurred and it quickly leads the price action to a next high destination. That is a case that there are further new news to support the greenback like rate hike for 0.25 basis point in December by Fed and the tax cuts plan by Trump's Administration be with further positive signals. Take your look at the depicted chart below for further reference.
Stop loss should be at around 114.9xx. Anyway the sell is, according to my opinion, a bit too earlier now. We need to keep watching the price action forms its pattern to an expected type, then it is the time to enter into the position.
On the chart, we can see that the right shoulder has not formed yet, and what we have to wait is that that right shoulder must be formed as drawn and the price at that price zone cannot make further high,but tending to head southward, then it is the right time to short.
To be a bit tactic to that position, we put a sell limit at 113.9xx with the same stop loss, but the position sizing must be 1/5 of the initial ( e.g.: Initially I will sell it with 0.10 lots, then my first sell limit should be 0.02 lots firstly, so that I am in and stay on the ball :), in case the 1st scenario occurs as expected, then will put the rest of 0.08 lots into.).
I sold at 113.5 where Sl Namminh? Thanks