USDJPY-- How to turn trendline into Magic Wand

18 de abr. de 2016

USDJPY-- a....b...c.correction is done & we are into impulsive leg down which started@109.733 high made a 107.836 low & took a u-turn making retracement high@108.789 shown by thumb which hit the upward slanting trendline-which is sign of polarity reversal as support at "b" turned into resistance- this is how trendline can act as magic wand.
Trading Strategy:
Traders- They can go short once the pair trades below 108.10 with stoploss@108.80 & Risky Traders can go short at levels below 108.500 with strict stoploss@108.80.
Current Level-108.636
Targets- Risky Traders should book partial@108.15 (35 pips once trade is active going below 108.500) & later @107.65.
I am expecting USDJPY to drop below 107.50 once 108.120 is broken

18 de abr. de 2016

Nota

Both trades are still not active...risky trade shall be active once 108.500 is broken & safe traders can go short once pair goes below 108.120.

18 de abr. de 2016

Nota

Let us not be stuborn & also have alternate strategy--If USDJPY goes above 109.35 which is 80% retracement of the fall from 109.733 to 107.836--we could take forex community for surprise as USDJPY could finish its downtrend & could be case of trucated 5th waves which is rarely seen. let us wait & watch.