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