Hello Traders, USDJPY seems to continue its downtrend.
At the moment the price is below the psychological level of 104 and, most importantly, below the POC (point of control) which shows where the "battle" between buyers and sellers has been played with respect to the last movement. Battle that was
A very important signal is also given by the fact that none of the last candles closed within the retracement area, despite being temporarily in it. The 9th December's candle is also a pretty bearish candle, with a big shadow above its body.
The RSI has also plenty of room to fall and it already reached its highs for this particular period in time.
Target 1 (identified with the 1.27 Fibonacci extension) - 103.09
Target 2 - 102.41
Stop Loss - above the poc2 and the first level of the retracement area
Risk Reward ratio 2.11
The downward scenario is strengthened if we consider the previous downward legs, with its related POC perfectly rejecting the price every single time.
In this case, the targets are on the charts, but the Stop Loss should be put above the descending trendline (and the related poc2)
Risk Reward ratio 3
At the moment the price is below the psychological level of 104 and, most importantly, below the POC (point of control) which shows where the "battle" between buyers and sellers has been played with respect to the last movement. Battle that was
A very important signal is also given by the fact that none of the last candles closed within the retracement area, despite being temporarily in it. The 9th December's candle is also a pretty bearish candle, with a big shadow above its body.
The RSI has also plenty of room to fall and it already reached its highs for this particular period in time.
Target 1 (identified with the 1.27 Fibonacci extension) - 103.09
Target 2 - 102.41
Stop Loss - above the poc2 and the first level of the retracement area
Risk Reward ratio 2.11
The downward scenario is strengthened if we consider the previous downward legs, with its related POC perfectly rejecting the price every single time.
In this case, the targets are on the charts, but the Stop Loss should be put above the descending trendline (and the related poc2)
Risk Reward ratio 3