USDJPY | Perspective for the new weekWith over 500pips run since my last publication on this pair ( see link below for reference purposes); the Bullish momentum appears to be very strong considering the significant Breakout of the Supply zone on the 29th of May 2021. The Greenback continued to push higher as the price hangs just above the Y109.000 level. In this regard, I shall be looking forward to a rally continuation as anticipation of a transition into a Harmonic (AB = CD) pattern remains high.
Tendency: Uptrend (Bullish)
Structure: Breakout| Supply & Demand | Harmonic pattern (AB = CD)
Observation: i. Bullish momentum that began in January 2021 is still in course as we witness an accumulation phase in the last 2 months (observe weekly chart).
ii. The Supply zone which held the price "Resisted" for 29days was finally broken on the 29th of May 2021 to give Buyers the momentum it requires to push for a rally.
iii. Since the Breakout, the price has remained "Supported" at Y109.200/109.500 (duration of two weeks) hereby providing the Buyers with a safe haven for future buying opportunity from this zone.
iv. With this set-up, I am looking forward to an ABCD pattern transition with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is at 61.8% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B @ 111.000 area.
v. Buying opportunity remains above Key level @ Y109.500 as any situation below this level renders this narrative to be invalid... Trade consciously! :)
Trading plan: BUY confirmation with a minimum potential profit of 130 pips.
Risk/Reward : 1:7
Potential Duration: 2 to 5 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
