USDJPY is attracting more traders by sideway market
Last Friday, the pair was going down for 80 pips to 106.6 then made a sideway market using one candle at US opening session with price level 107.07 as resistance and 106.59 as support. We look at this chart using pure price action technique,trader psychology and market psychology to be able to predict where the market will go.
In the chart you can see some green horizontal lines are closing positions of traders. It can be Take Profits of Seller or Stop Losses of Buyers, but we will call them Buyer Positions because in trader psychology most traders will open BUY positions with their stoplosses as the green lines. vice versa for the Seller Positions. And the Buyers have more positions because they are accumulated way longer than the Sellers as we know the Sellers are only there because of the latest downtrend. As long as the market is sideway, the Buyers and the Sellers positions will continue to increase. According to Market Psychology that the price is more likely to move to a price level where it has many closing positions, in this case the Buyers.
Now we have two scenarios of where The Market will move. First Scenario is The Market will continue the downtrend breaking the support level while closing the Buyers or, Second scenario where The market will close both sides forming a falsebreak pattern then going uptrend.
In the chart you can see some green horizontal lines are closing positions of traders. It can be Take Profits of Seller or Stop Losses of Buyers, but we will call them Buyer Positions because in trader psychology most traders will open BUY positions with their stoplosses as the green lines. vice versa for the Seller Positions. And the Buyers have more positions because they are accumulated way longer than the Sellers as we know the Sellers are only there because of the latest downtrend. As long as the market is sideway, the Buyers and the Sellers positions will continue to increase. According to Market Psychology that the price is more likely to move to a price level where it has many closing positions, in this case the Buyers.
Now we have two scenarios of where The Market will move. First Scenario is The Market will continue the downtrend breaking the support level while closing the Buyers or, Second scenario where The market will close both sides forming a falsebreak pattern then going uptrend.
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