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Hello fellow traders,
Today I have spotted a probable sell setup forming in USDJPY at the confluence of the 61.8% retracement of the fall from the high of 17 Nov 15 and low of 24 Jun 16 and the horizontal support at 114.30 levels which is likely to turn into good resistance level. So here we may see some price action and a sell set up may form. But i will look for a very strong bearish engulfing or the pinbar candle to enter a trade as the ongoing momentum on the upside is huge.
As of now there are three possible scenarios.
1. Price may retrace from this confluence to the rising channel resistance turned support and again shoot upward.
2. price may hit this confluence and resume the downtrend.
3. price may not be able to cross the resistance offered by 50% fibo retracement level and the resistance at 111.40 itself as it is also a nice confluence of two resistances.
Let us see what happens
Happy trading to all.
Today I have spotted a probable sell setup forming in USDJPY at the confluence of the 61.8% retracement of the fall from the high of 17 Nov 15 and low of 24 Jun 16 and the horizontal support at 114.30 levels which is likely to turn into good resistance level. So here we may see some price action and a sell set up may form. But i will look for a very strong bearish engulfing or the pinbar candle to enter a trade as the ongoing momentum on the upside is huge.
As of now there are three possible scenarios.
1. Price may retrace from this confluence to the rising channel resistance turned support and again shoot upward.
2. price may hit this confluence and resume the downtrend.
3. price may not be able to cross the resistance offered by 50% fibo retracement level and the resistance at 111.40 itself as it is also a nice confluence of two resistances.
Let us see what happens
Happy trading to all.
