USD/JPY, Where to Next?
As explained before before, USD/JPY drowned almost two percent this week, three scenarios can play out next:
- Bearish scenario: Current 4H chart is evolving into a bear flag from previous TR, bears could get a second or third (depending on ur analysis) leg down towards 154.00 target:
-Bullish scenario: Bulls could fight of the downtrend and reclaim 156.000 to evolve into a trading range. This will be hard as they have to reclaim 20 EMA where bears might be present. Bulls would need to show consecutive buying to show they are back in control.
-Sideways trading: Trading could be sideways to reach 20 EMA on the daily before next move is decided.
So far, odds favour the Bear scenario, the longer we stay below the trading range, the more likely bears are will get their bear leg.
- Scalp idea for the day traders:
Currently, theres an extending triangle evolving with an inside wedge top, this could be a sign bears are stepping in again. Bulls did not show strength at start of day, they got two small legs, but were not satisfied, likely to start selling again. Day could evolve into trading range day depending on reaction at day open.
If extending triangle plays out and there's consecutive selling, 155 is the target with 20 EMA acting as resistance.
Peace,
B Setup
- Bearish scenario: Current 4H chart is evolving into a bear flag from previous TR, bears could get a second or third (depending on ur analysis) leg down towards 154.00 target:
-Bullish scenario: Bulls could fight of the downtrend and reclaim 156.000 to evolve into a trading range. This will be hard as they have to reclaim 20 EMA where bears might be present. Bulls would need to show consecutive buying to show they are back in control.
-Sideways trading: Trading could be sideways to reach 20 EMA on the daily before next move is decided.
So far, odds favour the Bear scenario, the longer we stay below the trading range, the more likely bears are will get their bear leg.
- Scalp idea for the day traders:
Currently, theres an extending triangle evolving with an inside wedge top, this could be a sign bears are stepping in again. Bulls did not show strength at start of day, they got two small legs, but were not satisfied, likely to start selling again. Day could evolve into trading range day depending on reaction at day open.
If extending triangle plays out and there's consecutive selling, 155 is the target with 20 EMA acting as resistance.
Peace,
B Setup
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