Drop from the Top :)

We have 2 uptrend support lines broken and spike up during BoJ news, then during the day price dropped down to the support area of 113.84

The price should continue going down, if you're in from the top good for you, if not - wait until the support line becomes resistance, since we're in strong downtrend I am not sure if the resistance will be restested a lot, so be quick with placing shorts.

TP is the previous support line on 112.99

Good luck!

Note

Remember there is also a key area on 113.7, if this breaks it will give us another confirmation for going short.

Note

We saw bounce from 113.7, but this just gave us nice opportunity to short again. We had an entry at 114.32

TP1 : 113.7
TP2 : 112.99 (as previous one)

Note

This pin is signaling that bulls are exhausted and bears took over control. Setup is unchanged. First TP at 113.7, then move SL to Break Even for TP2. We might see bounce as last night from 113.7 or move further down to previous support at 112.99

Trade closed: target reached

TP1 Hit last night. Waiting for 112.9, SL on Breakeven :)

Note

If you are wondering about price of this pair for next weeks, we are looking at very high possibility of continued downtrend.

The most of big traders make their trades based on weekly chart and it‘s price action. On the weekly we can clearly see nice bearish engulfing candle which should indicate that price will be dropping towards 111 area in next couple of weeks.

Also, in last week we saw very important move down, and price didn‘t manage to go back in 114 area.

For next week there are 2 possible scenarios :

- Direct drop below 113
- Pullback to 113.95-144.0 area which will give us another opportunity to place an entry for short with TP on this week‘s low (113.1)

In both scenarios we remain bearish and we should stay bearish until we see bullish engulfing candle on weekly chart that will tell us that trend is changing.

Good Luck!

Note

The pair is forming rising flag. We are expecting breakout soon. On breakout, there is short-term support at 113.09 (last week's low), break below should lead us to 112.96 (Oct 31st low).

On further break we could see trendline support at 112.9 and 112.54

Trade closed: target reached

Perfect!

mryoung

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mryoung