USDJPY - Top building, consolidation? Yes. Correction? Maybe.

FX:USDJPY   U.S. Dollar / Japanese Yen
Daily chart:
Ichimoku still bullish , with Chikou Span still some open space ahead. Future Kumo not yet overshades Price candles.
However MADC is bearish , and ADX started to decline from its extreme high levels, and also DMI lines seem to start converging. There is some chance that this rally may loose steam ard this 110 area, but still very far away from a reversal. Even if the consolidation ends up in a pull back at some point, 107 seems to be a good support.

4 Hrs: We had a 100 WMA break with a bearish Kijun break last week, which we used to go short. However then the relatively thick Kumo stopped the move, and we partly got stopped out of shorts a day later. (Some is stillalive which had 110+ stop)
It seemed the bullish momentum could return, however by now it ratrher looks like USDJPY enterred a top consolidation phase. Chikou hit Price candles, and Price did not even touch prev high at 110. ADX down below 20, so no trend for now. Both present and future Kumo became very thin, which means as the longer averages stay together, this pair has lost it's momentum for now.

Idea and strategy: Evereybody sees USD bullish trend in general is very much matured, and probably a bit overdone. But as I have written in the last one month a few times, you can never know how stretched something becomes. What we see now is it starts consolidating again. Still this doesn't mean the trend is over for sure. It means only one thing, that the bullish trend lost steam for now. The trend will reverse when it breaks.
So outright I still wait for a stronger signal to sell (confirmed bearish Kumo breakout on 4 Hrs ), but on options maybe we can start playing some bearish game: I bought 1 month 108 and 107,50 Put options.


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