USDJPY ¥107 Price Breakout
Dynamic trend: Up
Background: W1 – weak; D1 – strong
In point 1 there was a “Shakeout” with a wide range and a very high volume. Following up-bar confirms buying. After a period of growth this price movement shakes out weak holders.
In point 2 there was a “Test after shakeout” with an average range and a normal volume. The volume was significantly lower than in point 1, which indicates the absence of selling pressure. The growth of prices after the test was confirmation of success of the test.
In point 3 there was a bar of the breakout of the trading range with a wide range and normal volume. The relatively low volume of points to the decreased interest of Smart Money to increase prices. Possible imminent market reversal.
Consider buying if the price pulls back to the 107.00 support level and “No Supply” appears (down bar with a narrow range and a low volume). Consider selling if the price breaks down the 107.00 support level, and “No Demand” appears (up bar with a narrow range and a low volume).
You can search for «No Demand» and «No Supply» on the lower TF.
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