USDJPY ! Resistance action, short trade idea.
USDJPY is trading swing high levels as Japan's central bank talks about taking notice.
At point 1, price makes a swing high and sells off sharply afterwards. This is when most trades will start noticing the level and they are prepared to sell when price comes back.
At point 2, price is approaching the level again but turns ahead of the line. Many traders have missed this entry and are probably very frustrated – you can be sure that next time price comes back, they will enter more aggressively. Sure enough, price breaks through the resistance level
At point 3 and all the traders that have missed the entry at point 2 and who now entered early are caught on the wrong side.
At point 4, price again respects the resistance level to the point
At point 1, price makes a swing high and sells off sharply afterwards. This is when most trades will start noticing the level and they are prepared to sell when price comes back.
At point 2, price is approaching the level again but turns ahead of the line. Many traders have missed this entry and are probably very frustrated – you can be sure that next time price comes back, they will enter more aggressively. Sure enough, price breaks through the resistance level
At point 3 and all the traders that have missed the entry at point 2 and who now entered early are caught on the wrong side.
At point 4, price again respects the resistance level to the point
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.