USDJPY Hourly – Strong Background Albeit Mixed Signals

Dynamic trend: Turned down

Background: W1 – weak; D1 – weak

Phase: Accumulation

 

USDJPY analysis

 

In point 1 there was a combination of two mixed bars. The first – “Shakeout”, with a relatively high volume compared to the last 40 bars; the spread was wide, all of which can be regarded as the accumulation by the Smart Money. The second bar was an up-bar with a wide spread and very high volume which showed supply, since prices didn’t continue to rally.

Further prices decreased, but on declining volume, indicating a lack of interest in lower prices by professionals.

In point 2 there was a “Shakeout”. The volume was significantly lower compared to point 1, which indicates the reduction of the number of sellers.

In point 3 there was the combination of the two bars, which together can be considered as a “Test”. The volume was relatively low. The next bar was an up-bar, which was a confirmation of the success of the “Test.”

In this situation, it’s recommend to refrain from deals due to the mixed signals. If there is a further down movement on low volume to the 101.900 level, there should be a long opportunity with the target on the trendline. The lowest support is at 101.500.

2 comments

KHALED said:

Reply
September 19, 2016 at 10:25 am

hi all
if i may share my thoughts about this….as we see price is reacting to the VSA signal to the left…there for there might be an up reversal to level range 102.000 ;102.0100 and from there to drop down (short bias) to level renge1 01.660 ; 101.486…..or to see a low volume up bars ; hi volume bars down at the current time now…. and in this case short we go to the mentioned level 101.660 ; 101.486

KHALED said:

Reply
September 19, 2016 at 10:32 am

hi all
if i may share my thoughts about this….as we see price is reacting to the VSA signal to the left…there for there might be an up reversal to level range 102.000 ;102.0100 and from there to drop down (short bias) to level renge1 01.660 ; 101.486…..or to see a low volume up bars ; hi volume bars down at the current time now…. and in this case short we go to the mentioned level 101.660 ; 101.486..just to add a VSA SIGNAL might appear in lower time frame for short

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