6J1! SHORT IDEA
On further analysis of the Yen Futures, we observe a market structure break for the first time. Any time this happens we anticipate net long traders at that price being triggered long while the smart money is short on their orders. Any net long trader at this level has to be liquidated. Logically any net trader long(dumb money) will have their stops below the Previous Daily Low. This results in price being delivered lower to liquidate any active trader on the wrong side of the market.
The result causes weakness in Yen and inverse strength in other pairs such as GBP on GBPJPY.
The result causes weakness in Yen and inverse strength in other pairs such as GBP on GBPJPY.
Note
Correction: Since JXY is actively traded in the Asia Session, I failed to anticipate massive liquidity higher at the Asia Open.Inversely, the analysis worked better on GBPUSD, since DXY is not actively traded in the Asian Session. the Consolidation provided the crosses to range expand lower at a discount price
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.