USDJPY: A Good Sell Opportunity from the Bearish Flag Pattern
-INTRODUCTION-
As we forecasted in our previous USDJPY analysis, the price has broken out of its last bearish flag channel, falling to a new low at the 124.400 level. In the 4-hour chart, we can see the price has broken the neckline of its head and shoulder pattern, signaling the beginning of a strong bearish trend. In the 1-hour chart, we can spot a strong bearish impulse followed by a nicely formed bearish flag channel. This is a clear bearish movement structure; therefore, we will be looking to enter sell positions.
-TRADING PLAN-
We can see a formation of a bearish flag channel from the support level of 126.400. The price is currently retracing to retest the resistance level of 127.500. Our area of interest to sell is from the 127.50 ~ 127.80 level. From this area, we will look for a consolidation pattern, followed by a breakout from the bearish flag channel.
Check out our previous JPY trading ideas below :)
As we forecasted in our previous USDJPY analysis, the price has broken out of its last bearish flag channel, falling to a new low at the 124.400 level. In the 4-hour chart, we can see the price has broken the neckline of its head and shoulder pattern, signaling the beginning of a strong bearish trend. In the 1-hour chart, we can spot a strong bearish impulse followed by a nicely formed bearish flag channel. This is a clear bearish movement structure; therefore, we will be looking to enter sell positions.
-TRADING PLAN-
We can see a formation of a bearish flag channel from the support level of 126.400. The price is currently retracing to retest the resistance level of 127.500. Our area of interest to sell is from the 127.50 ~ 127.80 level. From this area, we will look for a consolidation pattern, followed by a breakout from the bearish flag channel.
Check out our previous JPY trading ideas below :)
