Friday, October 27, 2017

Post:0034 USD/JPY US Dollar Japanese Yen , 30 October 2017 , Great opportunity to short


USDJPY on the short term is in an uptrend while intermediate & long terms are in a sideways.

On short & intermediate terms the resistance area is in between 114.242 up to 115.504 while support level will be 111.6xx , , 108.817 , 108.133 & 107.316.

& for long term the resistance will be 118.665 & support 107.316

On the intermediate term; trend line applied on the chart by connecting three peaks:
1- Aug.2015 peak
2- Nov-Dec.2015 peak
3- Dec.2016-Jan-2017 peak

& by visual observe; the above mentioned trend line get very close to the current price action to act as a resistance & Strengthens the resistance area (114.242-115.504) position.

And we should benefit from the intermediate & long terms "sideways mode" by taking out the Oscillators from the locker !! and use it, as the Oscillator technical indicators work best in the sideways mode, so I choose the most famous Oscillator "the Stochastic" & applied to the intermediate chart to find out that it indicates an overbought situation (breakthrough horizontal line "80" upwards) & also start to fall from there (stochastic crossing it's moving average downwards from the overbought area) & that's so bearish here. 

Also for more confirmation; the macd "histogram" (very reliable) indicat negative divergence on short term.

What about "Timing"  , I mean when exactly to push the sell button??

Ok here are three answers:

1- By applying the RSI on the short term chart, we have confirmation to connect the last two bottoms (8-Sep.2017 & 16-Oct.2017) to act as a potential trend line so we can use it , if the price breakthrough downwards then push the sell button.

2- On the (3 Hours chart) we have a potential channel & it says (Sell now ..) OMG.

3- On the one minute chart we have two peaks to connect to act as a resistance which will help to close the short position if the price cross it upwards ,, & we have the 30 minutes support (between 113.920-113.940) if it is crossed downwards then trigger sell.

Good Luck

Oh by the way don't forget to apply trailing stop loss.

Good Luck Again ;-)

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