This one isn't as in depth as my previous GBP/USD analysis but I do believe that we're in a possibility for a long-term short here to play out within the next week or so. USD/JPY does have a tendency to range for weeks at a time and sneak up big moves on a lot of people. Given the current formation, I think that this is too good to pass up.
There are not as many confluences as I'd like to see on a trade so my risk management is going to be much tighter than normal. With that in mind, and the R:R on this, I still find this trade to be worthwhile.
The key to this trade is basically trying to catch the top of the bearish triangle and once price breaks and closes below the 108.810-840 zone, we should see a downward fall with the potential for a retest of the previous support becoming resistance area. I'm curious to see how this pans out.
There are not as many confluences as I'd like to see on a trade so my risk management is going to be much tighter than normal. With that in mind, and the R:R on this, I still find this trade to be worthwhile.
The key to this trade is basically trying to catch the top of the bearish triangle and once price breaks and closes below the 108.810-840 zone, we should see a downward fall with the potential for a retest of the previous support becoming resistance area. I'm curious to see how this pans out.