Short opportunity ?
There is a strong line of support and resistance at 148.65 area,
I have a short position I opened a few weeks ago. I am still patiently waiting for the price to break below this level.
In October 2024, the price tried to break above the same support and resistance area and it took three weeks to properly break above and start the bull trend. (see blue box in the chart)
At the time, the price consolidated in the ascending parallel channel and the momentum indicators were showing clear hidden divergence which is the continuation of the trend.
I think the same scenario is unfolding right now. The price is moving inside the descending parallel channel and RSI is starting to show the hidden divergence.
My overall bias for USDJPY is bearish so I am looking for an entry to short.
When the price hit the upper parallel channel and rolle over to the downside, it might be a good place to open a short position.
I have a short position I opened a few weeks ago. I am still patiently waiting for the price to break below this level.
In October 2024, the price tried to break above the same support and resistance area and it took three weeks to properly break above and start the bull trend. (see blue box in the chart)
At the time, the price consolidated in the ascending parallel channel and the momentum indicators were showing clear hidden divergence which is the continuation of the trend.
I think the same scenario is unfolding right now. The price is moving inside the descending parallel channel and RSI is starting to show the hidden divergence.
My overall bias for USDJPY is bearish so I am looking for an entry to short.
When the price hit the upper parallel channel and rolle over to the downside, it might be a good place to open a short position.
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Disclaimer
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.