USD/JPY May Move higher from the 124.00!
The Daily trend is in an Uptrend technically indicated by following:
• Dow pattern- higher tops and higher bottoms (B1-T1-B2-T2).
• Price is currently trading above the uptrend line.
The uptrend is confirmed by the bullish cross of MA10 above MA20.
Prices are trading above the resistance-turned-support level at 121.87.
The ascending triangle is a bullish formation that usually forms during an uptrend as continuation pattern.
• Two or more equal highs from a horizontal line at the top (A&C).
• Two or more rising troughs from an ascending trend line that converges on the horizontal line as it rises (B&D).
• In order to qualify as a continuation pattern, an established trend should exist (mentioned above).
• Duration from a few weeks to many months
• Return to Breakout: Sometimes there will be a return to the horizontal line-support level (121.87-S1), before the move begins in earnest.
• Target: once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout.
Therefore, I will recommend LONG POSITIONS for the no position holders on USD/JPY. Take profit at 128.00 (R3), the measuring of the widest distance of the pattern and applying it to the resistance breakout (121.87). Stop loss should be a bit below the support level-S1, thus the stop loss is at 121.00-120.00.
For LONG-holders I will recommend to HOLD their long positions and adopt the same stop loss and take profit orders as mentioned above.
For the short-position holders I will recommend them to CLOSE SHORT POSITIONS AND GO LONG (since they are trading against the short-term trend) and adopt the same limit and stop orders as mentioned above.
• Dow pattern- higher tops and higher bottoms (B1-T1-B2-T2).
• Price is currently trading above the uptrend line.
The uptrend is confirmed by the bullish cross of MA10 above MA20.
Prices are trading above the resistance-turned-support level at 121.87.
The ascending triangle is a bullish formation that usually forms during an uptrend as continuation pattern.
• Two or more equal highs from a horizontal line at the top (A&C).
• Two or more rising troughs from an ascending trend line that converges on the horizontal line as it rises (B&D).
• In order to qualify as a continuation pattern, an established trend should exist (mentioned above).
• Duration from a few weeks to many months
• Return to Breakout: Sometimes there will be a return to the horizontal line-support level (121.87-S1), before the move begins in earnest.
• Target: once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout.
Therefore, I will recommend LONG POSITIONS for the no position holders on USD/JPY. Take profit at 128.00 (R3), the measuring of the widest distance of the pattern and applying it to the resistance breakout (121.87). Stop loss should be a bit below the support level-S1, thus the stop loss is at 121.00-120.00.
For LONG-holders I will recommend to HOLD their long positions and adopt the same stop loss and take profit orders as mentioned above.
For the short-position holders I will recommend them to CLOSE SHORT POSITIONS AND GO LONG (since they are trading against the short-term trend) and adopt the same limit and stop orders as mentioned above.
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