USD/JPY: 113.6 Resistance’s Breakout, Yet Again

USD/JPY: 113.6 Resistance’s Breakout, Yet Again

December 5, 2016 | Author: Denis | No comments | Categories: Break-out Trading • Congestions • Market Analysis • Supports/Resistances Trading

Dynamic trend: Turned up
Background: W1 – weak; D1 – strong
Phase: Markup
Support: 113.60
Resistance: 116.00

USDJPY: Hourly

USDJPY: Hourly

Observations

Point 1: There was a breakout of the resistance level, with an average range and a high volume. The following up-bar confirmed buying. In addition, on a smaller TF, we can observe a successful testing after this breakout, which confirmed the validity of this movement.

Point 2: We may see a “Shakeout” with a wide range and very high volume. Because the subsequent bar was a down bar, and the volume was high, we may conclude there is a large supply in the market, which must be tested.

Point 3: A second breakout of the resistance level (113.60) occurs.

Suggested Strategies

Consider buying if “No Supply” appears (down bar with a narrow range and a low volume) near the support level 113.60.
Consider selling if the price breaks down the support level 113.60 and “No Demand” appears (up bar with a narrow range and a low volume).

Tips

You may search «No Demand» and «No Supply» on a lower TF.

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