USDJPY Breaks Down Out Of Consolidation Structure – Waiting

0

usdjpy sell

The USDJPY has been a fairly ‘grindy’ market this year with only a few impulsive moves drawing our attention.

For the last month, we’ve seen this market going into a tight consolidation structure here on the daily chart, not offering any high quality trades or any high quality environment to trade them in.

Last session however, price finally broke the consolidation structure lows and close below the whole consolidation range. This is a fairly aggressive bearish event, especially given the size of the candle.

Now us swing traders are waiting for the market to test the old structure, and confirm it is going to hold as new resistance by printing a bearish reversal candle at this hot spot.

If this scenario does play out, and we do get a bearish signal – it will be a classic ‘text book’ perfect swing trade, allowing us to enter into a developing bearish move at a good price.

Get the 5 most predictable currency pairs

About Author

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.

Comments are closed.