USD/JPY Bearish Gartley Pattern
Now that the Fed data and interest rate decision is through,
its time to look for some trade opportunities. On the 6 hour
time frame I was able to draw the bearish Gartley Pattern.
Looking at the RSI divergence and general overbought
conditions, a retracement to the downside has presented
itself. The week has almost ended, thus, it is probably wisest
to trade this setup next week, however, as long as price
stays below the 10SMA you could still target 109.80/30 this
week. Also keep an eye on the daily time frame as price
seems to have made a lower high and is just inches away
from crossing below the 10SMA enabling more downside
momentum.
Trade short 1 (RvR ratio 1.5 to 2:1 depending on your S/L)
Entry: Close below 110.219 and below 10SMA (wait for a
possible re-test of that level)
S/L 1: 110.900
S/L 2: 110.720
T/P 1: 109.829
T/P 2: 109.199
Trade short 2 (RvR ratio 2:1)
Entry: Close below 109.199
S/L: 109.743
T/P 3: 108.112
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading
its time to look for some trade opportunities. On the 6 hour
time frame I was able to draw the bearish Gartley Pattern.
Looking at the RSI divergence and general overbought
conditions, a retracement to the downside has presented
itself. The week has almost ended, thus, it is probably wisest
to trade this setup next week, however, as long as price
stays below the 10SMA you could still target 109.80/30 this
week. Also keep an eye on the daily time frame as price
seems to have made a lower high and is just inches away
from crossing below the 10SMA enabling more downside
momentum.
Trade short 1 (RvR ratio 1.5 to 2:1 depending on your S/L)
Entry: Close below 110.219 and below 10SMA (wait for a
possible re-test of that level)
S/L 1: 110.900
S/L 2: 110.720
T/P 1: 109.829
T/P 2: 109.199
Trade short 2 (RvR ratio 2:1)
Entry: Close below 109.199
S/L: 109.743
T/P 3: 108.112
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading
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