Possible reverse on USDJPY?
Updated
Hi traders,
this analysis starts from higher timeframes. As you can see in the attached analysis i predicted usdjpy was coming to test this level some days ago. Now at this level we have a major structure daily level (black line) with a couple of fibonacci levels for confirmation.
Another confirmation comes from RSI, that has a divergence on the last highs. In the daily chart we just exited a OVERBOUGHT condition.
But all of those indicators are not enough, i want to see a reverse pattern made by price action. And there it is in form of an engulfing kicker on 4hr chart.
Price is retracing a little bit offering us a better risk to reward ratio.
Stop 1 atr above highest high, first target at 1:1. Second target along with structure.
If you have any question or opinion, don't be shy and comment below.
Otherwise, see you in the next chart!
this analysis starts from higher timeframes. As you can see in the attached analysis i predicted usdjpy was coming to test this level some days ago. Now at this level we have a major structure daily level (black line) with a couple of fibonacci levels for confirmation.
Another confirmation comes from RSI, that has a divergence on the last highs. In the daily chart we just exited a OVERBOUGHT condition.
But all of those indicators are not enough, i want to see a reverse pattern made by price action. And there it is in form of an engulfing kicker on 4hr chart.
Price is retracing a little bit offering us a better risk to reward ratio.
Stop 1 atr above highest high, first target at 1:1. Second target along with structure.
If you have any question or opinion, don't be shy and comment below.
Otherwise, see you in the next chart!
Trade closed: target reached
First target hit! Moved stop at break evenTrade closed: target reached
Second position out at break even. Total profit around 120 pips!Note
And now price is about to retest the double top's top. Let's see if we could short the market again at that level.
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