USDJPY - How to play the short position
From the swing low point on October 16, price has continued to climb to the 114.430 extremely key resistance level. At this point we can see signs that the current bullish wave is beginning to lose momentum.
I am looking for three things to validate a short trade setup:
1) A break of the trendline on a higher timeframe (D1)
2) A re-test of the 1.00 fibo level (price of 113.248)
3) A price action signal confirming rejection of the 1.00 fibo level (engulfing bearish candle, shooting star, etc)
First target is 0.786 level (111.984). Second target is 111.070 - a few pips above the 0.618 fibo level. Move stop loss to break even once first target is hit. Stop loss will most likely be around the 113.500 level
I am looking for three things to validate a short trade setup:
1) A break of the trendline on a higher timeframe (D1)
2) A re-test of the 1.00 fibo level (price of 113.248)
3) A price action signal confirming rejection of the 1.00 fibo level (engulfing bearish candle, shooting star, etc)
First target is 0.786 level (111.984). Second target is 111.070 - a few pips above the 0.618 fibo level. Move stop loss to break even once first target is hit. Stop loss will most likely be around the 113.500 level
Comment:
Price has reacted exactly as expected per analysis. Now waiting for price action trigger before going short.