USDJPY: Just A Quick Short-Term Thought On What's Next

16 Tem 2015

Haven't posted on this pair in a while but I'll put this out there real quick as to what I am thinking and you can get an idea of my thought process.

In the above chart, there is a clear ascending triangle being traced out (as of this posting, it seems to be breaking out of it). Beyond the triangle, there is a possible bearish butterfly waiting to be completed. (BC extensions for the PRZ are on the chart).

More importantly, in this below chart, you can see I've labeled the current wave up a 5 wave impulse wave with prices in the 5th wave ending. Typically, within the 5th wave is when you see things like ending diagonals, ending triangles and such. Prices will often extend out past the ending pattern and then quickly fall back through.

Now, what I'm also seeing ass a POSSIBILITY and nothing more right now is a POTENTIAL Bearish Cypher pattern (in light grey) that if prices do go up deep into the SR Zone I've identified here and touch the the upper bounderies, then this cypher will have a possible defined C point to which to better base it on. In addition, that C point would be a 3rd touch on the resistance structure. So this would be a good structure trade.as well.


So that is what I'm thinking and of course, must wait patiently to see how it plays out. Will I take the butterfly and go SHORT? Yes, if it completes I will but again, this is a strong uptrend so I will only take a small position, make a few pips and look to the cypher.