USDJPY - Potential Head & Shoulders Pattern - Trend Continuation
Updated
Hi Traders!
The market is in an overall Downtrend.
Alright, let's begin the multiple timeframe analysis with the weekly chart:
The main thing we can see here is the descending Triangle.
This structure has two main factors:
The market is in an overall Downtrend.
Alright, let's begin the multiple timeframe analysis with the weekly chart:
The main thing we can see here is the descending Triangle.
This structure has two main factors:
- The descending Trendline
- The weekly Support
Now we analyse the price action of the market.
You see, the market is reacting less and less to the weekly Support than it did the times before.
This is a sign of Bullish Weakness or Weakness of Support.
That means that we're looking to short the market.
Now, here is the daily:
Here you can see another descending Trendline.
This is giving some more bearish pressure.
And it is in a Downtrend.
Moving on to the H4:
You can see the market retracing.
It is also at a consolidation area.
We identified a possible Head & Shoulders Pattern.
The target is the weekly Support.
Now, let's think about how to enter.
The Entry Timeframe H1:
As you can see there is a little ascending Trendline there.
It could serve as our Entry.
So, if the market doesn't make the Left Shoulder, we won't miss the trade:
We'll just sell the Trendline Break.
The SL is above the Consolidation Area and the TP at Weekly Support.
The risk-to-reward ratio is better than 1 to 3!
We recommend to trade the Retest of the Trendline Break.Thanks and successful Trading :)!
Note
Here is also the RED BOX, but in Big ;) :
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