This idea is for demonstration and educational purposes and does not constitute a signal to sell. This is for study purposes only. For this pair we see a reversal pattern forming on a higher timeframe. If you look at this pair in conjunction with
JPYWCU
we can get an idea of how USD/JPY correlates to the JPYWCU (index for JPY) . There is an inverse relationship between the two. As you study
JPYWCU
it appears to have a reversal pattern forming for bullish outbreak. USD/JPY appears to have a reversal pattern forming for a bearish outbreak. Now, there is a lot of red folder JPY news this week which will likely cause a lot of volatility with this pair. It is imperative to study price action. Before considering a short I would watch for price to pullback to the zone as noted, and watch price action from there. A pullback greater than this zone would cancel out this idea. It is also very possible that the pullback may fall short of this zone; zones are not exact.
JPYWCU
we can get an idea of how USD/JPY correlates to the JPYWCU (index for JPY) . There is an inverse relationship between the two. As you study
JPYWCU
it appears to have a reversal pattern forming for bullish outbreak. USD/JPY appears to have a reversal pattern forming for a bearish outbreak. Now, there is a lot of red folder JPY news this week which will likely cause a lot of volatility with this pair. It is imperative to study price action. Before considering a short I would watch for price to pullback to the zone as noted, and watch price action from there. A pullback greater than this zone would cancel out this idea. It is also very possible that the pullback may fall short of this zone; zones are not exact.