Hi Traders!
We have a bull flag setup here on the 2H USDJPY chart. This usually happens after a big rally up or down (flag pole) followed by a consolidation period before continuing with momentum. We are now in the consolidation period and looking to continue pushing up. The level to break here is 138.878. If this is broken, we expect another push to 139.000 and possibly a test of 140.000.
Our long term bullish ascending triangle on the 1D chart (link to this idea provided below) is still in play and also supports this idea.
Very important though, that we also look at the possibility of the pattern failing and moving to the downside.
PLEASE NOTE: that if the pattern fails, it will turn from a Bull Flag to a Double Top, which is a REVERSAL pattern, and will change from bullish to bearish.
The bottom of the flag at 137.424 must hold to avoid the reversal. We do have key levels around the 137 area with a previous resistance swing high around 137.774, so there are opportunities on both sides.
Please do not forget to like, comment and follow, we would love to hear your thoughts!
Thank you for your support.
BluetonaFX
We have a bull flag setup here on the 2H USDJPY chart. This usually happens after a big rally up or down (flag pole) followed by a consolidation period before continuing with momentum. We are now in the consolidation period and looking to continue pushing up. The level to break here is 138.878. If this is broken, we expect another push to 139.000 and possibly a test of 140.000.
Our long term bullish ascending triangle on the 1D chart (link to this idea provided below) is still in play and also supports this idea.
Very important though, that we also look at the possibility of the pattern failing and moving to the downside.
PLEASE NOTE: that if the pattern fails, it will turn from a Bull Flag to a Double Top, which is a REVERSAL pattern, and will change from bullish to bearish.
The bottom of the flag at 137.424 must hold to avoid the reversal. We do have key levels around the 137 area with a previous resistance swing high around 137.774, so there are opportunities on both sides.
Please do not forget to like, comment and follow, we would love to hear your thoughts!
Thank you for your support.
BluetonaFX
Our Bull Flag idea has played out perfectly.
140.000 was hit after flag break to the upside. We went as high as 140.231 and have now pulled back under the 140.000 level, this likely due to buyers closing out positions at the 140.000 level.
We now need to see if there is another test of 140.000 or if a lack of new buyers causes us to push back down into the range.
BluetonaFX