Consolidation within a triangle
Hello Traders!
With a lot of action surrounding the USD in recent times, this is a good time to look at some retracements involving the greenback. USD/JPY has been a hot pair and has maintained an excellent uptrend. And currently, I only see a triangle pattern that is significant. The previous triangle as shown in the chart yielded a handsome 1300 pips! But it may be a little too far fetched to expect a move like that on a retracement. what we can expect is the pair to achieve a 50% retracement which is very reasonable.
The pair is currently trading around the Monthly Pivot point which is at 119.10.
There are two ways if you want to join me in this short trade. We could wait for the pair to reach the upper border of the triangle and short it there. This entry gives the best risk reward. we could just place the S/L above the previous high consolidation and that would be at 121.00 or you could enter short when it breaks out from the bottom line of the triangle. In which case, the S/L will be around 120.00 but in either case, the the first target is the previous low and .38 Fib retracement @ 115.50 and second target will be the .5 Fib retracement level which is @ 113.54.
I hope this trade pans out the way we expect it to..
Happy trading and happy pippin!
With a lot of action surrounding the USD in recent times, this is a good time to look at some retracements involving the greenback. USD/JPY has been a hot pair and has maintained an excellent uptrend. And currently, I only see a triangle pattern that is significant. The previous triangle as shown in the chart yielded a handsome 1300 pips! But it may be a little too far fetched to expect a move like that on a retracement. what we can expect is the pair to achieve a 50% retracement which is very reasonable.
The pair is currently trading around the Monthly Pivot point which is at 119.10.
There are two ways if you want to join me in this short trade. We could wait for the pair to reach the upper border of the triangle and short it there. This entry gives the best risk reward. we could just place the S/L above the previous high consolidation and that would be at 121.00 or you could enter short when it breaks out from the bottom line of the triangle. In which case, the S/L will be around 120.00 but in either case, the the first target is the previous low and .38 Fib retracement @ 115.50 and second target will be the .5 Fib retracement level which is @ 113.54.
I hope this trade pans out the way we expect it to..
Happy trading and happy pippin!
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