USD/JPY October Market Analysis: Bearish Structure and Key Sell
USD/JPY October Market Analysis and Trading Setup
In the month of October, we are observing an open high-low-close structure on the USD/JPY, which strongly suggests the development of a potential sell setup. At this point, we are awaiting further confirmation through a TDI (Traders Dynamic Index) cross, which will signal the appropriate entry points for sell positions.
Key Observations:
1. Bearish Divergence: Since August 16, 2024, there has been a clear bearish divergence, extending from that date to the current market high.
2. Daily Timeframe Structure: The open-high structure on the daily chart for October further strengthens the bearish outlook.
3. Overbought Conditions: The market appears significantly overbought, following a bullish breakout that began on October 1, 2024.
4. TDI Cross as Confirmation: A bearish cross in the TDI indicator will serve as confirmation of the presence of sellers, providing an essential signal for initiating sell positions.
Targeted Take Profit Levels:
- Take Profit 1: 147.500
- Take Profit 2: 146.500
- Take Profit 3: 145.500
- Take Profit 4: 144.500
Trading Advice:
It is crucial to wait for valid signals, such as the TDI cross, to confirm entries before taking action. Always trade with caution, and ensure risk management strategies are in place to protect your capital.
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