Context : weekly UJ
UJ is in well defined uptrend , with minor if at all setbacks , currently we are moving sideways and sit near its highs
Location: daily UJ
after the indecsion got cleared to the upside , the upside momentum increased and we are off its recent highs as of now
Price Action: hourly UJ
the down channel got cleared to the upside , hitting several potential stop loss (buy stop) levels , the early momentum slowed down despite hitting buystop levels, which indicates that some used the generated liquidity to sell into the triggered buystop orderflow , with the result of price didnt go anywhere (selling better than buying),
we broke a minor support level @123.200 and currently formed another small consolidation between 123.00 and 122.720 due to the fact that we didnt got anywhere , despite the stop run , we come to the conclusion that the market is turning weak and therefore i would anticipate a short setup if we break the current support at 122.720
lets compare the USD/JPY vs. DXY (dollar index)
till point A everything went smooth and the UJ wath acting in line with DXY , but as the UJ made a lower low (B) DXY held its recent low(A)
the next rally brought DXY back to its intermediate swing high (C) while UJ made alower high , these indicates weakness in UJ ,
furthermore after a new low was made DXY startet to rally , where UJ didnt participated and moved sideways.. another sign of weakness
setup:
the rangebound UJ , also shows signs of weakness , as the selling pressure seems to be stronger , aswell as the price didnt came back above
the "mean" of 122.890 indicating weakness, the recent selloff made back all ground the sloppy rally attempt gained in a lower number of bars,
which leaves us with a chance to in a breakout + pullback short setup to participate in any further weakness,
however there is a pot. trouble area ahead where price may react , that is the current low at arround 122.650
thats the current situation in UJ , lets see how the market plays out ...
i will be back at the NY session... for an update
UJ is in well defined uptrend , with minor if at all setbacks , currently we are moving sideways and sit near its highs
Location: daily UJ
after the indecsion got cleared to the upside , the upside momentum increased and we are off its recent highs as of now
Price Action: hourly UJ
the down channel got cleared to the upside , hitting several potential stop loss (buy stop) levels , the early momentum slowed down despite hitting buystop levels, which indicates that some used the generated liquidity to sell into the triggered buystop orderflow , with the result of price didnt go anywhere (selling better than buying),
we broke a minor support level @123.200 and currently formed another small consolidation between 123.00 and 122.720 due to the fact that we didnt got anywhere , despite the stop run , we come to the conclusion that the market is turning weak and therefore i would anticipate a short setup if we break the current support at 122.720
lets compare the USD/JPY vs. DXY (dollar index)
till point A everything went smooth and the UJ wath acting in line with DXY , but as the UJ made a lower low (B) DXY held its recent low(A)
the next rally brought DXY back to its intermediate swing high (C) while UJ made alower high , these indicates weakness in UJ ,
furthermore after a new low was made DXY startet to rally , where UJ didnt participated and moved sideways.. another sign of weakness
setup:
the rangebound UJ , also shows signs of weakness , as the selling pressure seems to be stronger , aswell as the price didnt came back above
the "mean" of 122.890 indicating weakness, the recent selloff made back all ground the sloppy rally attempt gained in a lower number of bars,
which leaves us with a chance to in a breakout + pullback short setup to participate in any further weakness,
however there is a pot. trouble area ahead where price may react , that is the current low at arround 122.650
thats the current situation in UJ , lets see how the market plays out ...
i will be back at the NY session... for an update