USDJPY - H&S. Shorting the Right Shoulder
Updated
Hi,
Little forex session. I think that the YEN will appreaciate against the USD.
Here I'm betting on the fact that BOJ will start to increase the interest rate during Q1-Q2 2023. IF that will happen (and it will break a 10y long low interest monetary policy), then money will flow into YEN causing its appreciation.
Based on TA, I see a H&S on the 1W candles. So, I will play this out:
(optional) swinging from here to the top of the right shoulder
shorting the top of the Right shoulder. (not safe, but I prefer cause more profitable, even if shorting the confirmation below the neckline would be better and recommended).
If this plays out, my first target is at 114-116 zone.
Little forex session. I think that the YEN will appreaciate against the USD.
Here I'm betting on the fact that BOJ will start to increase the interest rate during Q1-Q2 2023. IF that will happen (and it will break a 10y long low interest monetary policy), then money will flow into YEN causing its appreciation.
Based on TA, I see a H&S on the 1W candles. So, I will play this out:
(optional) swinging from here to the top of the right shoulder
shorting the top of the Right shoulder. (not safe, but I prefer cause more profitable, even if shorting the confirmation below the neckline would be better and recommended).
If this plays out, my first target is at 114-116 zone.
Note
Trading USDJPY and DXY together.USD may recover and become stronger during the upcoming rate hike. so DXY may go up an re-test the resistances above.
I'm still betting on the fact that Japan will raise interest rate during Q1-Q2 2023, so I'm betting on an appreciation of JPY against the dollar.
Watching closely the area of interest for opening/closing my trades.
Trade active
Still in. Let's see if it will bounce, touch resistance zone as above for refilling my shorts.Trade active
both USDJPY and DXY bounced firmly from support zone :)Note
Both USDJPY and DXY following the path. Actually DXY flirting with yellow line (resistance). IF it will break it (and I think odds may be in our favor) next stop is our zone purple target. In that scenario we will have a good entry point for the short on USDJPY.So watching closely it for timing our entry.
Note
USDJPY reached our purple box. This is the short entry we have been waiting for 2 weeks. NOTE: DXY it's just above the orange line, so I may expect it to reach the purple zone as well, that would lead USDJPY will go further into the purple zone, giving us an optimal entry.
Trade active
Entering a short. Let's see if macro will help!Trade active
It seems like that entering the short at Mar 10th at roughly 136.50 was a good move. Interest rate seems also in our favor
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