USD/JPY short

31 thg 10, 2017

The market is overall bearish on the weekly timeframe as indicated by the strong blue trend line. We are currently touching it and sellers have been indicating that the trend line is here to stay for now. Looking on the daily chart, we do see a break into consolidation indicating a market neutral / slightly bearish stance on this pair. The daily consolidation zone is a good indicator for potential profits/losses. Looking deeper into the 4 hour chart, we see a lot of similarities with the daily timeframe as it is also currently in consolidation and has made lower lows, lower closes stopping at a 50%/61.8% Fibonacci level (depends on where you look from). As a result, I believe that the market will go down at least in the short run as indicated by my pending orders.