You actually could use this chart as most standart example for the "Re-Test" formation of a Trend.
Because we clearly see that the price broke the bearish trend AND re-tested the previous trendline.
I made a little drawing in middle of the chart, so everyone know what i mean.
In most cases it is a short signal for every trader who see this.
But there is still a possibility that the USDJPY want to retest not the trendline BUT the Realitve low at 98.8XX (fat red line)
So, what direction to trade? :
As always..
If breaks out of the range to the top, than long -> next target is 98.8XX
If breaks out of the range to the bottom, than short -> next target is...find one
Because we clearly see that the price broke the bearish trend AND re-tested the previous trendline.
I made a little drawing in middle of the chart, so everyone know what i mean.
In most cases it is a short signal for every trader who see this.
But there is still a possibility that the USDJPY want to retest not the trendline BUT the Realitve low at 98.8XX (fat red line)
So, what direction to trade? :
As always..
If breaks out of the range to the top, than long -> next target is 98.8XX
If breaks out of the range to the bottom, than short -> next target is...find one