USDJPY 20m Short-term Short Analysis
Updated
- Strategy preconditions
USDJPY 20m chart, the downtrend strength has not completely depleted, we can still take some final Short trades before potential ranging or reverse begins.
There are 2 Short strategies to go about, the first one is more risky while the second is safer and more rewarding.
1. Directly enter Short around the 20m resistance level 145.544, as the blue prediction shows. SL can be set below the "Caution level", TP at 144.520, do not be greedy for this trade, since the market can reverse quickly. I sense already that the momentum starts slowing down. This trade is more risky because we'll ignore additional LTF downward BOS confirmation, instead, we take Short directly when the 20m resistance is reached.
2. if we see that before the market reaches the 20m resistance, it has formed a relatively more bumpy and slower pattern shown by the purple prediction, we then wait for a clean LTF downward BOS confirmation and pullback prior to our Short entry. SL can be set above the entry area, and TP in this case can be more greedy at 1H level 144.147, which seems pretty clean in 20m chart as well. - Cautions
For the second strategy, if the "Caution level" is reached before any LTF downward BOS confirmation has formed, we must abandon this strategy, and start re-analysing the whole thing. In that case, I think the market will start ranging.
For the first strategy, if the "Caution level" is reached first, then it is a loss.
I know that the downtrend on 20m chart seems promising, but do NOT be greedy and think about some daily TP far below. We only take profit that we do understand.
Note
Right now, if you entered with strategy 1, you need to exit to break even, I was expecting a direct push down with strategy 1 when the 20m resistance is touched, but instead it started ranging at local scale.
So now We wait for the BOS to form in order to apply Short of strategy 2. if you get in soon, you need to get out either when TP is reached or before the news release coming in 4 hours. Otherwise, Mission Aborted !!! I will re-analyze USDJPY after the news.
Order cancelled
Mission Aborted! The "Caution level" has been reached, this Short idea is invalid.Note
Hi guys, since this Short idea on USDJPY did not work out yesterday, I've made a new one again on USDJPY. Please take a look :)
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