So the price dropped nicely from 118.80 as expected.
I said in my previous post that the target should be DS2. But I simply meant double buttom. So you could take profit now. It totally makes sense.
The price may bounce up and form Double Buttom, or the price may continue to drop down to Fib 138.2%. (Remember, Fib 50% -> Fib138.2%)
In any case, the price may show a bit of retracement on H4 chart. (below). So get ready for a little up move on Hourly chart.
On H4, the price may go up to (future) 21EMA, or up to the next Resistance (119.30), before it continues the mission to go down.
Based on the above information, it is up to you what to do. That’s your alpha.
You could scalp Long this pair from “Double Bottom”. Or you could simple wait for the price to come up, then Short.
I would probably just wait for the price to come up again, before I can short again.
I only talked about USDJPY today. (which is very unusual). But this strategy can be applied to GBPJPY as well.
YJ Baik – Forex.Today @ Tokyo