Top Trade Idea For April 17th, 2014 – USDJPY
By Mircea Vasiu on Apr 17, 2014 10:16:05 GMT
Time to take a look at the usdjpy pair as this resilience to break lower is leading us to a single possible scenario: running variation of a contracting triangle on the daily chart.
This scenario is going to be invalidated only by a move below 100.75 level so this should be the stop loss for any possible long positions.
However, the reward is quite handsome as I am looking at two possible targets:
the first target should be given by the previous highs as in a running variation of a contracting triangle it is mandatory for price to take the previous highs in the b wave. This means a move above 105.42 level;
second and final target should be around 106 area as the d wave pink to the upside should be only shy higher than the previous c wave pink.
Concerning the structure of the move it is important to keep in mind that this is still a triangle, a contracting one, and this means the move to the upside that is supposed to take the highs is going to be corrective as well.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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