Looking for upward entry points on decline
09 September 2016, USD/JPY
Daily chart: ADX is going through correction, so the main trend is trading around the middle Bollinger band(101.85)
Н4: equally probable scenarios are growth to 104.00 (upper Bollinger band) and drop to 100.72 (bottom band). ADX is weak and corrected
Н1: a better shaped support area - 101.88 (middle Bollinger band); resistance (upper band) is 102.66. The oscillator is heavily overbought, but ADX remains in a very active trendarea. On the one hand, drop to 101.88 is very likely, on the other hand, a bearish trap is probable. Therefore, we should wait until the end of decline to 101.88 to test this zone regarding a buy signal. If we get Buy signals there, purchases will have more relevant.
The main scenario - decline to support 101.88 and then rise to 102.66.
The alternative scenario - an abrupt upward move to 103.00 with an eye to 104.00
Trading solutions: look for Buy options (around 101.88)
Aleksey PanasenkoAnalyst of «FreshForex» company
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us