Breaking down USD/JPY - this set-up really caught my eyes on the 4 hour chart.
On the weekly time frame I saw price reject the previous high, creating a double top. Not much caught my eye on the daily.
Zooming in on the 4 hour chart, things started to link together. I can see a current, short term downtrend and my bias is currently short on this pair with a supporting technical strength score of -4.
I will only be entering a short on this pair if I see a retracment and rejection of the blue highlighted zone. This coincides with a head and shoulders neckline, the previous low and potential fib rejection. If I was to see a 1 hour bearish candlestick pattern occurs on this level, showing strong rejection I will likely enter short targeting 112.275 - 112 monthly support.
On the weekly time frame I saw price reject the previous high, creating a double top. Not much caught my eye on the daily.
Zooming in on the 4 hour chart, things started to link together. I can see a current, short term downtrend and my bias is currently short on this pair with a supporting technical strength score of -4.
I will only be entering a short on this pair if I see a retracment and rejection of the blue highlighted zone. This coincides with a head and shoulders neckline, the previous low and potential fib rejection. If I was to see a 1 hour bearish candlestick pattern occurs on this level, showing strong rejection I will likely enter short targeting 112.275 - 112 monthly support.