USDJPY | Perspective for the new week | Follow-up
With an astronomical 500pips run in our direction since my last speculation (see link here below for reference purposes); It appears the character displayed by price action lately has found a safe haven for Supplication @ Y109.500 area thereby welcoming a Selling bias for me in the coming week(s).
At this point in a very Bullish trend, the market is looking as if it is trying to figure out where to go next as the thrust from Pivot III did not have enough momentum to find a new high and considering the sharp rejection of the Y109.500 area during last week trading session; it appears that the Greenback risk a further decline. Can inflation rescue the dollar? Let's see!
Tendency: Downtrend ( Bearish )
Structure: Supply & Demand | Trendline | Reversal pattern
Observation: i. The Bullish run that began late January 2021 which is characterized by series of higher swing highs and higher lows appears to have found a peak @ Y111.000 after what looks like a setup transitioning into a downtrend after hitting a brick @ Y109.500 level.
ii. The present structure has a high tendency of changing to a series of lower highs and lower lows in the coming week(s) as I anticipate a Breakdown of the Bullish trendline in the nearest future.
iii. I will like to call our attention to the Supply zone @ Y109.300/110.000 area; This level was a very strong Sell window before the Breakout on the 30th of Mar 2021 followed by a Breakdown on the 7th of April 2021 and since this day we have witnessed price trading under this level throughout the month of April 2021.
iv. With my Key level holding @ Y108.500, I shall be looking forward to taking advantage of a decline below the key level this week.
v.This been said, there is an opportunity to add a position to your existing trade when price does a further breakdown/retest of Demand level @ Y107.500.
vi. CAUTION: On the contrary; it could be a rally (bullish) continuation when price breaks above Supply zone and retest to find new demand level at this juncture... Trade consciously!:)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:5
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
At this point in a very Bullish trend, the market is looking as if it is trying to figure out where to go next as the thrust from Pivot III did not have enough momentum to find a new high and considering the sharp rejection of the Y109.500 area during last week trading session; it appears that the Greenback risk a further decline. Can inflation rescue the dollar? Let's see!
Tendency: Downtrend ( Bearish )
Structure: Supply & Demand | Trendline | Reversal pattern
Observation: i. The Bullish run that began late January 2021 which is characterized by series of higher swing highs and higher lows appears to have found a peak @ Y111.000 after what looks like a setup transitioning into a downtrend after hitting a brick @ Y109.500 level.
ii. The present structure has a high tendency of changing to a series of lower highs and lower lows in the coming week(s) as I anticipate a Breakdown of the Bullish trendline in the nearest future.
iii. I will like to call our attention to the Supply zone @ Y109.300/110.000 area; This level was a very strong Sell window before the Breakout on the 30th of Mar 2021 followed by a Breakdown on the 7th of April 2021 and since this day we have witnessed price trading under this level throughout the month of April 2021.
iv. With my Key level holding @ Y108.500, I shall be looking forward to taking advantage of a decline below the key level this week.
v.This been said, there is an opportunity to add a position to your existing trade when price does a further breakdown/retest of Demand level @ Y107.500.
vi. CAUTION: On the contrary; it could be a rally (bullish) continuation when price breaks above Supply zone and retest to find new demand level at this juncture... Trade consciously!:)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:5
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
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