Spike-base
USDJPY - Bear trap long before more down?USDJPY came under some pressure on Friday. There may be more downside, but right now bears should beware. just below the swing low around 111.500 we have a spike base/demand zone. if we break below this level and demand is still there + shorts start taking some profits, we may get a nice pop higher. As always, will wait for price action after the break. A touch of the 200% extension and an hourly close back above the 111.500 area along with that area once again providing support will have me checking the 5min/1min charts for some long scalps before re-assessing.
I like to look for situations that can potentially catch people out ( like Bear Traps/Bull traps ). When this happens, the flow can change quickly and nice, fast moves can happen.
I like to assess hourly charts for key zones like this, and then trade the shorter time frames to exploit the flow.
