Hello traders. I want to share with you my view of USD/JPY. We have a daily chart here and as you can see the pair is currently on a downward trend. The market has been overextended for days and this is now the expected scenario. So, the first time you were able to open a relatively safe short position (using daily context and stop loss) is after forming a wash and rinse pattern on Monday. There you had a double pick (plus bearish MACD during the second peak), and the pair cleared the previous maximum and started falling. But if you missed that opportunity, I think we'll get another one next week. The pair forms a head and shoulders pattern and we can wait for some confirmation to enter a short position during the formation of the right shoulder. For example, you can use the Fibonacci retracement tool and go short from 0.618 fib retracement, putting a stop above the previous high (approx. 131.50 - this is the safest stop in this situation). To get into position, look for some bear patterns around this level (0.618) in the lower time frames.
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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.