USDJPY broke through the consolidation area but what comes next?

Sep 9, 2021

1. Price has been trading within
109.605 - 110.400 trading range
after a bearish impulsive move from
110.700 area.

2. Price retested the previous
high of the range at 110.404
which is our fake-out area
in the form of a double top.

3. Took a short position
yesterday at New York Session
after price made another attempt
to break the 110.400 area but
made a bull trap in the form
of a double trap.
(high probability entry for
short)

4. RSI shows a weakness in momentum after a retest in the previous high
(divergence)

4.14RR

Note: Short position is invalidated if price breaks through our fake-out area at 110.400

Sep 9, 2021

Trade closed: target reached

1. I patiently waited on the price to hit my TP

2. In before the drop, I was anticipating for the price to test the lows since
I knew that after it made a retest on the highs fake-out will follow.

3. I'd also like to point out that this pair has been trading within the range, so it's
plausible for this pair to drop.

4. Bearish move on DXY is also another factor for the dump.

4.14R