This is just two example scenarios. I'm not expecting price action to actually play out exactly like the drawings. The drawings are more of a framework to help visualize and plan. Basically, the orange scenario symbolizes dollar weakness continuing with strength. In this outcome, I would look to find entries close to the bottom red downtrend trendline, so at new lows.
Also, I might try entries using 76 fib entry or double bottom.
If dollar weakness was a fakeout and quickly reverses, I'd be looking to enter long on any pullbacks to previous resistance/breakouts. Possibly the red trendlines, fib levels, or 200d moving average, I'm not sure exactly where.
If the actual price action proves to be choppy/range bound, I'll have time to access situation. If I feel unprepared for outcome, I'll most likely just sit out of USDJPY aside from short term trades on smaller time frames.
Also, I might try entries using 76 fib entry or double bottom.
If dollar weakness was a fakeout and quickly reverses, I'd be looking to enter long on any pullbacks to previous resistance/breakouts. Possibly the red trendlines, fib levels, or 200d moving average, I'm not sure exactly where.
If the actual price action proves to be choppy/range bound, I'll have time to access situation. If I feel unprepared for outcome, I'll most likely just sit out of USDJPY aside from short term trades on smaller time frames.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.