USDJPY - H&S. Shorting the Right Shoulder
Hi,
Little forex session. I think that the YEN will appreaciate against the USD.
Here I'm betting on the fact that BOJ will start to increase the interest rate during Q1-Q2 2023. IF that will happen (and it will break a 10y long low interest monetary policy), then money will flow into YEN causing its appreciation.
Based on TA, I see a H&S on the 1W candles. So, I will play this out:
(optional) swinging from here to the top of the right shoulder
shorting the top of the Right shoulder. (not safe, but I prefer cause more profitable, even if shorting the confirmation below the neckline would be better and recommended).
If this plays out, my first target is at 114-116 zone.
Little forex session. I think that the YEN will appreaciate against the USD.
Here I'm betting on the fact that BOJ will start to increase the interest rate during Q1-Q2 2023. IF that will happen (and it will break a 10y long low interest monetary policy), then money will flow into YEN causing its appreciation.
Based on TA, I see a H&S on the 1W candles. So, I will play this out:
(optional) swinging from here to the top of the right shoulder
shorting the top of the Right shoulder. (not safe, but I prefer cause more profitable, even if shorting the confirmation below the neckline would be better and recommended).
If this plays out, my first target is at 114-116 zone.
Сделка активна:
Still in. Let's see if it will bounce, touch resistance zone as above for refilling my shorts.
Сделка активна:
both USDJPY and DXY bounced firmly from support zone :)
Комментарий:
Both USDJPY and DXY following the path. Actually DXY flirting with yellow line (resistance). IF it will break it (and I think odds may be in our favor) next stop is our zone purple target. In that scenario we will have a good entry point for the short on USDJPY.
So watching closely it for timing our entry.
So watching closely it for timing our entry.
Комментарий:
USDJPY reached our purple box. This is the short entry we have been waiting for 2 weeks.
NOTE: DXY it's just above the orange line, so I may expect it to reach the purple zone as well, that would lead USDJPY will go further into the purple zone, giving us an optimal entry.
NOTE: DXY it's just above the orange line, so I may expect it to reach the purple zone as well, that would lead USDJPY will go further into the purple zone, giving us an optimal entry.
Сделка активна:
Entering a short. Let's see if macro will help!
Сделка активна:
It seems like that entering the short at Mar 10th at roughly 136.50 was a good move. Interest rate seems also in our favor
USD may recover and become stronger during the upcoming rate hike. so DXY may go up an re-test the resistances above.
I'm still betting on the fact that Japan will raise interest rate during Q1-Q2 2023, so I'm betting on an appreciation of JPY against the dollar.
Watching closely the area of interest for opening/closing my trades.