USDJPY too overstretched! Correction Likely to Occur
USDJPY is too overstretched or to put it in technical analysis term, its too oversold. Therefore an anticipated correction would likely occur. However as traders we perform technical analysis and await confirmation that a correction would likely take place.
Here we have a 4H chart of USDJPY. 115.000 represents a concrete monthly psychological resistance where the prices might likely reverse for time being. Also on the chart an ascending channel is visible and MONTHLY pivots. A confirmation which is needed here would be the following:
1) break of ascending channel
2) Close of 4H candle below the 4H 50 EMA
3) close of D candle below R2 monthly pivot
After all the above criteria have met, its important to know that the initial target would R1 MONTHLY PIVOT (112.500). However since this trade is on 4H timeframe, an extra caution is required which would be to notice where the weekly pivot pointS are located when the trade criteria has met. Combining all these, the risk to reward ratio evaluation is required and SHORT trade can be placed.
Note: This is just my personal technical analysis and its not a trade signal. The trade signal would be posted on an entirely different post shall the trade criteria meet.
Here we have a 4H chart of USDJPY. 115.000 represents a concrete monthly psychological resistance where the prices might likely reverse for time being. Also on the chart an ascending channel is visible and MONTHLY pivots. A confirmation which is needed here would be the following:
1) break of ascending channel
2) Close of 4H candle below the 4H 50 EMA
3) close of D candle below R2 monthly pivot
After all the above criteria have met, its important to know that the initial target would R1 MONTHLY PIVOT (112.500). However since this trade is on 4H timeframe, an extra caution is required which would be to notice where the weekly pivot pointS are located when the trade criteria has met. Combining all these, the risk to reward ratio evaluation is required and SHORT trade can be placed.
Note: This is just my personal technical analysis and its not a trade signal. The trade signal would be posted on an entirely different post shall the trade criteria meet.
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