USDJPY [Triangular Contraction + Channels]
Updated
Observation:
Price action is inside the triangular contraction and downtrend channel.
Analysis:
If the price stops at dynamic downtrend channel or breaks 110.015, it then confirms the downtrend channel. Expect price to go down till dynamic support of triangular contraction.
If the price pulls back at 110.015 or pulls back at 115.437, then expect price to move sideways in consolidation.
If tends to be in low volatility, expect a big move and will break the triangular contraction.
If price breaks dynamic downtrend channel, breaks 115.437, and dynamic resistance of triangular contraction, [which is about news I think], expect price will move on a wider upward channel [green color] in a longer time frame.
Conclusion:
Good to know the boundaries as signal points as we can identify where to get our take profit and stop loss. There are many opportunities to profit as long as you know the boundaries that will tell you what is the direction of the market.
Price action is inside the triangular contraction and downtrend channel.
Analysis:
If the price stops at dynamic downtrend channel or breaks 110.015, it then confirms the downtrend channel. Expect price to go down till dynamic support of triangular contraction.
If the price pulls back at 110.015 or pulls back at 115.437, then expect price to move sideways in consolidation.
If tends to be in low volatility, expect a big move and will break the triangular contraction.
If price breaks dynamic downtrend channel, breaks 115.437, and dynamic resistance of triangular contraction, [which is about news I think], expect price will move on a wider upward channel [green color] in a longer time frame.
Conclusion:
Good to know the boundaries as signal points as we can identify where to get our take profit and stop loss. There are many opportunities to profit as long as you know the boundaries that will tell you what is the direction of the market.
Note
Price ignore support level at 110.015.High probability price will bounce at dynamic support of Downward Channel making 110.015 support level change to new resistance level because bulls does not appear on the chart.
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.