After news release for US Dollar, 6J Futures JPY USD seems to be developing a more clear market structure and completing a bullish Shark formation. When price reaches the marked zone it would be wise to look at price action behavior around the area to see if price provides us with a valid entry for long opportunities.
This pair is currently in a neutral position as it is trapped in a consolidation zone. Since this correlates with USDJPY the same scenario should be taking place on that pair as well. It is wise to wait for a break of structure and formation of proper market structure before any trade could be placed.
This is a very interesting chart.
Normally I don't look at monthly charts - but this one is special.
Lots of lines on the chart - but take a moment and I'll go through it with you.
Firstly I realize that most people trade currencies do so with CFDs - which is fine but the banks/funds that push the market around look at Futures Market.
The red dotted line...
- Price Inside Weekly Drop Base Rally Demand Zone.
- Waiting for 4hr TF buyers to take control while price
is inside the weekly demand. Keeping eye on JPY pairs.
- Trend = Down so any longs will be counter-trend.
See the Picture above more information.
Woke up this morning to see that the Yen had sold off to multi year lows. While the I've read there is a 'risk off' mentality - then that should make the Yen a safe haven.
So what else? Well the US Dollar is strong - right now its very divergent. We may have seen the high of the week for the DXY.
This has had an impact on the Yen vs the US Dollar.
Everything covered going into NFP.
If there is obvious trend after 10:30 am EST - maybe I'll join.
The only trade on is the USD YEN (6J) which due for a move its been very quiet.
Like it up at the POC with the target - which is .38 Retrace as well - all about the confluence.
Three POCs above it and one below.
4 Hour Chart
COT index indicator shows the positions of the commercial traders.
My strategy is to follow changes on that index (high reading = bullish, low reading = bearish)
Its not an entry indicator but a setup indicator, so make sure to enter on traditional signals like double tops or trendline breaks...
I keep an updated list of the major futures instruments with...
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Oversold territory, so take care of the trendline.
Max profit: $213
Probability of Profit: 72%
Profit Target relative to my Buying Power: 20%
Max loss with my risk management: ~$250
Req. Buy Power: $1038 (max loss without management at expiry, no way to let this happen!)
Tasty IVR: 34 (average at futures)
Expiry: 36 days
Sell 2 !6JM1 Jun4'...