USD JPY SET FOR SHARP BREAKOUT?




Having already rallied sharply by over 1500 Pips in just 2 months, we could still see further gains for the USD if a strong breakout takes place from the Daily Chart's Pennant .

 The pair is currently hovering above the Resistance of this Pennant, which was formed following that sharp breakout that started in October of 2014. Pennants and Ranges, which are setups that reflect low levels of liquidity, are usually formed after these aggressive market movements. 
DAILY CHART - PENNANT SETUP
This current Pennant setup is taking place within the context of a strong uptrend, which would provide added momentum for a Bullish Breakout.
DAILY CHART - UPTREND LINES

Taking a closer look at the Pennant, we can see that there has been a temporary breakout above Resistance that was quickly met by a bearish pullback. This has led to the formation of a Counter Trend Line (CTL) setup which, if broken by a strong enough Bullish Candle, will be the signal for us to start buying US Dollars.

DAILY CHART - COUNTER TREND LINE 
On the other hand, this pullback could also be the start of a move that carries us back down to the Support boundary.

DAILY CHART- BEARISH REVERSAL?

This would either followed by another rally back to Resistance or a breakout below Support to the Inner Uptrend Line.
TRADE DECISIONS

 If a Bullish Candle forms above the CTL convincingly and confirms to our rules for Normal Candles, going long will be a strong possibility. If the bearish move were to continue towards Support instead, trading this may too risky given the small distance to this boundary. However, if a suitable bearish candle starts the breakout towards the Inner Uptrend Line, then this will be analyzed for a short trade.


________________________________________


________________________________________

Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

Comments

Post a Comment

Popular posts from this blog

STRATEGY NOW UP BY 23.78% WITH RECENT 2.00% USD CHF TRADE

Image
This trade involved trading the False Breakout Reversal Setup that was taking place on the Daily and 4 Hour Charts last week, amidst the period of risk aversion across markets in reaction to the on going Coronavirus outbreak. This quick and aggressive trade took just 4 Hours in providing me with a 2.00% Rate of Return, just ahead of the Bullish Reversal that took place at Support. With this result, the new strategy is now up by 23.78% from just 14 trades, pushing me closer to the next major target of a 30% Rate of Return. As long as we carefully and patiently wait to only trade the setups with a High Probability of Success, large Rates of Return are possible for us in this difficult market.  VIDEO HIGHLIGHT OF THE USD CHF TRADE The main factors related to this trade that you'll seen in the Manual and in the more detailed Video Analysis available only to my subscribers were: 1. Accurately Identifying Consolidation...
Read more

SHARP GBP USD RALLY PREDICTED 7 DAYS AGO

Image
As predicted several days ago, the GBP has rallied sharply above major Support area of 1,2000 to start an uptrend that will take it up to the 1,2750 area by Wednesday January 25th, 2017. This is all part of the predicted  formation of a Consolidation Setup on the Daily Chart. In the screen shot of the Private Video Tutorials sent to DRFX Subscribers (www.drfxswingtrading.com), you can see the blue line used to indicate where I expected the rally. PRIVATE VIDEO LESSON - JANUARY 10, 2017 In the screenshot and Youtube Video below of January 18, you can see that the rally took the form of a strong Bull Candle - exactly where I predicted. PRIVATE VIDEO LESSON JANUARY 18, 2017 This projected Consolidation is based on the type of bullish and bearish waves on the Daily Chart. From the Trading Manual, you will see that there are certain types of waves that tell us when the market will form a Consolidation. ...
Read more

FOREX TRADING MANUAL & TRADING SERVICES

Image
The ability to accurately forecast and profit from the movements on the Forex Market is what you will enjoy with this  Trading Manual and Swing Trading Services . DRFX FOREX SWING TRADING With this Manual, you will learn the Techniques based on Candlestick Patterns that determine market direction every day. You'll be able to apply this knowledge to your Swing, Day Trading or Scalping strategies for Maximum Returns every week, as you trade your way to Long-Term Wealth . PREDICTING MARKET DIRECTION & PATTERNS There are times when you may be trading what appears to be an Uptrend on the 30 Minute Chart only to realize that this was part of a temporary reversal on the Daily Chart leading to unexpected losses. These problems are easily solved with the  Manual  as you’ll discover the main  Technical Factors  of the Daily and 4 Hour Charts that allow you to accurately...
Read more