Free Profitable Forex Newsletter
Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
Sell USDJPY (Pending) on Bearish Bat
USDJPY dropped notably last week with a big red candle on the weekly chart, but the pair is now recovering in the beginning of the current trading week.
It has now reached even 50% of last week's candle and is near an important technical area - namely the harmonic resistance zone of a bearish bat pattern.
This harmonic resistance is standing just above current price levels - in the 110.70 - 110.80 price area. Once the price reaches it if the pattern will work well a reversal should occur fairly soon and take the pair to the first target of the pattern - the 38.2% Fibonacci retracement of the CD leg, that is the 110.39 level.
A big advantage of harmonic patterns is that they allow us to place very tight stops, so in this case, it can be placed just above the 110.80 level (say 110.90) with a pending SELL order in the 110.70 - 110.80 area.
Stop loss:
- above the harmonic resistance
Targets:
USDJPY could take another leg lower on larger timeframes also
The potential to USDJPY to accelerate to the downside should not be underestimated either, as we have seen in previous instances of risk aversion kicking in.
So, if things start moving in that direction it will be prudent to hold short USDJPY beyond the levels of the specified targets.
For that to materialize, however, stock markets would need to start selling off aggressively (maybe like we saw in late December last year) or some further specific USD weakness will could trigger another wave of JPY strength.
Trade signals from the past week
- March 15, 2019 – Short EURUSD from 1.1350, stop hit at 1.1375 = -25 pips
- March 15, 2019 – Short AUDJPY from 79.00, target reached at 77.80 = +120 pips profit
TOTAL: +95 pips profit in the last week
TOTAL: +1165 pips profit since October 1, 2018
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Thank you!
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predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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