USDJPY is currently testing a key resistance level at the Neckline of a Head and Shoulders pattern on the H1 timeframe. This level has acted as a strong barrier in recent sessions, and a confirmed breakout could indicate a shift in market structure, leading to a bullish continuation.
The price has retraced to key Fibonacci levels, showing potential for an impulsive move if buyers gain control. A successful breakout could align with Wave 3, a high-momentum phase in Elliott Wave Theory, pushing the price toward the 161.8% Fibonacci extension at 149.50.
Trade Plan
- Breakout Confirmation: Looking for price to close above the neckline with strong momentum before considering entry.
- Target: Fibonacci 161.8% (149.50), aligning with potential Wave 3 expansion.
- Stop Loss: Placed at 147.60 (Pocket Pivot) to manage risk effectively.
- Risk-Reward Ratio: Minimum 3X, ensuring a favorable reward-to-risk setup.
Key Factors to Watch
- Rejection vs. Breakout: If the price fails to break above the neckline, it may lead to a rejection and a short-term pullback.
- Volume Confirmation: A breakout with high volume would add further conviction to the trade idea.
- Market Sentiment: Keep an eye on macroeconomic factors and USD strength, which could influence price action.
Disclaimer
This analysis is for educational and informational purposes only. It is not financial advice. Please conduct your own research and manage risk accordingly.
The price has retraced to key Fibonacci levels, showing potential for an impulsive move if buyers gain control. A successful breakout could align with Wave 3, a high-momentum phase in Elliott Wave Theory, pushing the price toward the 161.8% Fibonacci extension at 149.50.
Trade Plan
- Breakout Confirmation: Looking for price to close above the neckline with strong momentum before considering entry.
- Target: Fibonacci 161.8% (149.50), aligning with potential Wave 3 expansion.
- Stop Loss: Placed at 147.60 (Pocket Pivot) to manage risk effectively.
- Risk-Reward Ratio: Minimum 3X, ensuring a favorable reward-to-risk setup.
Key Factors to Watch
- Rejection vs. Breakout: If the price fails to break above the neckline, it may lead to a rejection and a short-term pullback.
- Volume Confirmation: A breakout with high volume would add further conviction to the trade idea.
- Market Sentiment: Keep an eye on macroeconomic factors and USD strength, which could influence price action.
Disclaimer
This analysis is for educational and informational purposes only. It is not financial advice. Please conduct your own research and manage risk accordingly.
Tanakorn Koomrampai ,CMT, CFTe
FB page (International) : facebook.com/graphtechniq
FB page (Thai) : facebook.com/graphtechnic
Line @graphtechnic
FB page (International) : facebook.com/graphtechniq
FB page (Thai) : facebook.com/graphtechnic
Line @graphtechnic
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.
Tanakorn Koomrampai ,CMT, CFTe
FB page (International) : facebook.com/graphtechniq
FB page (Thai) : facebook.com/graphtechnic
Line @graphtechnic
FB page (International) : facebook.com/graphtechniq
FB page (Thai) : facebook.com/graphtechnic
Line @graphtechnic
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.