Hi traders.
In response to my previous post regarding further upside on USDJPY, this chart clearly shows the breakout pattern. Think about it... the first two touches of the trend were unpredictable as there was no basis to draw a trend line yet. A minimum of two touches is required to establish a trend line and the third touch is the one that retail traders get to use as an entry signal... smart money knows this. As such, we do see the rejection at the trend line resistance... that is the retail selling. All that selling being bought up by smart money. I am fully anticipating a break to the upside while at the same time being mindful of the imminent resistance at the 113.5 figure which is just about inline with the 50% retracement of the 2017 down move from the January high to the April low at 113.4.
I certainly would not be interested in selling the 113.5/4 figure for anything more than an intraday scalp, given the trend any reaction off the level will likely be short-lived.
I hope this is helpful!
In response to my previous post regarding further upside on USDJPY, this chart clearly shows the breakout pattern. Think about it... the first two touches of the trend were unpredictable as there was no basis to draw a trend line yet. A minimum of two touches is required to establish a trend line and the third touch is the one that retail traders get to use as an entry signal... smart money knows this. As such, we do see the rejection at the trend line resistance... that is the retail selling. All that selling being bought up by smart money. I am fully anticipating a break to the upside while at the same time being mindful of the imminent resistance at the 113.5 figure which is just about inline with the 50% retracement of the 2017 down move from the January high to the April low at 113.4.
I certainly would not be interested in selling the 113.5/4 figure for anything more than an intraday scalp, given the trend any reaction off the level will likely be short-lived.
I hope this is helpful!
