USDJPY on 4 Hour

Updated

Price has reached a key area of resistance looking left, where a powerful movement has previously occured. Price has formed 2 rejections at the zone currently, displaying a spinning top indecision candlestick, and is currently in a consolidation triangle on the lower timeframe. Looking for one last rejection to occur at resistance for a high Reward / Risk ratio setup, or a breakdown of the triangle pattern on the lower timeframe for confirmation that sellers are ready to push price lower again.

Note

Hourly: Currently sitting on the lower boundary trendline of the triangle

Trade active

Solid breakout of the triangle to the downside has occured, and a 4 hour red candle breakout as well. This looks very valid for a downside movement.

Note

Setup is valid in the sell zone. If price makes a break back above the zone and closes back in the triangle setup will be invalidated, and the next area of interest would be the 4 hour resistance zone. But as of current price action, this looks like a valid breakout and below this box region a move lower can occur.

Note

Price moved through target 1 and is floating 55 pips in profit currently headed towards target 2.

Note

4 Hour shift of momentum is looking heavy on the bearish momentum after the pattern breakout

Note

TP2 secured, +65 pips. 3:1 Reward to Risk setup

Profound_Ambition

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