I have been following the USDJPY, because last week, against my perspective (I said that market could achieve the 100 level), it had some problems to get 100, and worst, made a higher lower than previous higher. Theoretically, technically analysis says if price doesn’t break the previous higher or achieve the same level, we must start thinking for the downside… and that’s what the market done. So, in previous week, it confirmed and broke the support at 98.522. My strategy will be wait for the retest, that combines with descending triangle in rsi and I will call it “first push”, of my three push down perspective. I have two targets, because if it handle and support the price above 97.260 (this area), we can go to newer highers and, then, I want protect some capital (of course if this happen all my perspective die). So, it’s a very important zone. Which movement could take me down? The close above 99.300.
The second graph it’s only to show you the fibo levels, which you can also see that coincide with my entry points . For me the fibonacci retracements are one of the most important tools in markets because we are talking about physics and retracements. It’s all about a statistic events.
This article doesn’t excuse a reading of a discloser.