USDJPY has finally touched the 50% of the last daily swing, which makes us possible to prepare for another trade. However for this trade it will be necessary to wait for further confirmations on lower timeframes because there is still a chance, that the market will go higher, to reach the 38,2% as it did the last time. Factor that needs to be taken into account is the H1 corrective trend line. Once the price breaks the line, it may not necessarily mean the sellout. To avoid this, a retest of short-term support on even lower timeframe and further bearish price formation would serve as good signals.
What also determines the success of this trade is how will the US dollar move in the nearest future. The DXY has printed double bottom after long lasting plunge, which may be working against this trade.
Signals:
- 50% of the daily Fibo with 1:1 market structure
- possible break of the corrective trend line (1H) and retest of local resistance
- DXY price action
What also determines the success of this trade is how will the US dollar move in the nearest future. The DXY has printed double bottom after long lasting plunge, which may be working against this trade.
Signals:
- 50% of the daily Fibo with 1:1 market structure
- possible break of the corrective trend line (1H) and retest of local resistance
- DXY price action