USDJPY > 3 Simple Reasons to Prepare for a Bullish BreakOut
Hi Yen Risk Takers,
Straight to the point>
(1) USDJPY is generally trading in a Bullish Environment Since Oct 2013.
(2) We note a very clear immediate Elliott Wave formation developing.
Currently price is in Corrective Wave 4 with possible Wave 5 projected in the future.
Seasoned Elliotticians should be able to spot a bigger Elliott wave at a higher level.
They will understand that this trade is all about capturing "Wave 5 of III"(not illustrated, for simplicity's sake).
(3) We also observed that current price action is a potential Triangle continuation pattern, which will be confirmed upon break out on the upside.
(Projection)
Based on reasons (1), (2) & (3), we project that price is likely to breakout upwards, once the current consolidation is over.
Possible catalyst will be European Central Bank's Meeting later today, with a likely Quantitative Easing driving general US dollar strength.
(Entry)
If price can convincingly trade and sustain above 119.90.
(Stop Loss)
Below 117.50.
(Taking Profit)
For those long term traders can look at 129.00 as a general objective.
Medium Term Traders can generally look at taking profit partially bit by bit, as price reaches the following levels:
Take Profit Level 1: 121.00
Take Profit Level 2: 123.00
Take Profit Level 3: 125.00
(Risk)
There is always the risk of a false breakout, where price fakes a move above 119.90 and falls back into consolidation mode.
There is also the risk of averse price movement due to unexpected announcements by Central Banks.
A classic example will be the recent Swiss National Bank's decision to remove EUR/CHF Cap.
(References)
Elliott Wave> elliottwave.com/freeupdates/archives/2011/07/06/Using-Elliott-Waves-As-Simple-As-A-B-C.aspx
Descending Triangle> thepatternsite.com/dt.html
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Straight to the point>
(1) USDJPY is generally trading in a Bullish Environment Since Oct 2013.
(2) We note a very clear immediate Elliott Wave formation developing.
Currently price is in Corrective Wave 4 with possible Wave 5 projected in the future.
Seasoned Elliotticians should be able to spot a bigger Elliott wave at a higher level.
They will understand that this trade is all about capturing "Wave 5 of III"(not illustrated, for simplicity's sake).
(3) We also observed that current price action is a potential Triangle continuation pattern, which will be confirmed upon break out on the upside.
(Projection)
Based on reasons (1), (2) & (3), we project that price is likely to breakout upwards, once the current consolidation is over.
Possible catalyst will be European Central Bank's Meeting later today, with a likely Quantitative Easing driving general US dollar strength.
(Entry)
If price can convincingly trade and sustain above 119.90.
(Stop Loss)
Below 117.50.
(Taking Profit)
For those long term traders can look at 129.00 as a general objective.
Medium Term Traders can generally look at taking profit partially bit by bit, as price reaches the following levels:
Take Profit Level 1: 121.00
Take Profit Level 2: 123.00
Take Profit Level 3: 125.00
(Risk)
There is always the risk of a false breakout, where price fakes a move above 119.90 and falls back into consolidation mode.
There is also the risk of averse price movement due to unexpected announcements by Central Banks.
A classic example will be the recent Swiss National Bank's decision to remove EUR/CHF Cap.
(References)
Elliott Wave> elliottwave.com/freeupdates/archives/2011/07/06/Using-Elliott-Waves-As-Simple-As-A-B-C.aspx
Descending Triangle> thepatternsite.com/dt.html
Like it, Share it, Follow it~
Trading View: BreakOutArtist
StockTwits: stocktwits.com/BreakOutArtist
Twitter: twitter.com/BrkOutArtist
Facebook: facebook.com/brkoutartist
TradeHero: BreakOutArtist
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