The Yen has been a pair that I've had on my radar from the start of the year and honestly speaking, well it just hasn't done too much. That is until now. Recently the Yen has hit 5 month highs against the Dollar, and essentially what that means is that it's retested the previous structure lows that were set back in early September. This level offers a few opportunities.
First we have a completed bullish advanced bat pattern at 108.15's Secondly, we have a structure based trading opportunity as the market works its way into a key decision point area.
Seeing how we've been "stuck like chuck" in a period of consolidation for the past 10+ months or so, I have zero directional bias on this pair. What I mean by that is, IF the buyers can protect this level THEN I will certainly be looking for a buying opportunity, but only until the next level of danger. I have no reason to believe that price will make it's way all of the way back across the range. Well, at least not enough reason to but any money at risk shooting for that to happen.
IF the sellers are able to push through this level THEN there will be the opportunity to take advantage of a breakout/ trend following trade to the downside, likely to the 105 mid level. (Very similar to what we've been tracking on the GBPUSD)
We ended last week with a BIG HIT on the GBPJPY & started this week with a BIG HIT on the EURUSD! Excited to see if we can keep this momentum going as we start our active trading this week. Good luck out there traders!!!
I was just looking at this same opportunity......saw the daily bat, went to a lower time frame to see if I might be able to get involved with a little intraday bullish move.....
keep up the good work and as always thanks for everything. Glad to see you and JG are doing well!!
Akil_Stokes
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@RonSublett, Thanks Ron, I'm not too excited about this trade, but I was able to find a way to get involved in a move that works for me down on the range bar. We'll have to see if the market will reach my level or not
dtech369
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@Akil_Stokes, Looking at the DXY to determine my entry.
@Akil_Stokes, Because its a measure of the USD against other currencies and its been making HH on the 4h, also it was corresponding well last week and week before with other moves i have been monitoring. But i am open to any advice available especially from a Pro as yourself.
Akil_Stokes
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@dtech369, In my opinion the DXY should have no affect on how you approach this pair. Each currency pair is a battle between two individual currencies so although there may be some correlations at time, Dollar strength on the DXY (which is mostly based off of how the USD performs in comparison to the Euro) should have no affect on the USD in comparison against the Yen. Just my opinion of course.