USDJPY is dropping simple because supply exceeded demand and price ultimately followed.
This supply level held for a number of reasons:
1. The supply formation is sideways and considered a drop-base-drop aka CP (continuation pattern)
2. This CP was created at the break of an uptrending trendline.
3. The imbalance created on the way down was significant, long extended candles give clues.
4. Volume and divergences also tip us off.
Basically there were many reasons to take the trade, however there were very few reasons NOT to.
This supply level held for a number of reasons:
1. The supply formation is sideways and considered a drop-base-drop aka CP (continuation pattern)
2. This CP was created at the break of an uptrending trendline.
3. The imbalance created on the way down was significant, long extended candles give clues.
4. Volume and divergences also tip us off.
Basically there were many reasons to take the trade, however there were very few reasons NOT to.
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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.
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.