Top trade idea for October 1st, 2015 – USDJPY
By Mircea Vasiu on Oct 1, 2015 12:15:07 GMT
Crucial moment for the USDJPY pair as it is barely holding the same area that proved to be support on the left side of the chart and a break lower will only spell troubles for bulls. It is clear now that market is forming a triangle after the dip in the 116 level and the lower highs/higher lows series is supposed to break eventually. I cannot think of a better reason for the triangle to break but the NFP this coming Friday.
Being a fundamental reason, the triangle can break either way and the current scenario is based on finding an attractive risk-reward ratio. This can only happen if the triangle is breaking to the upside so a move above 122.50 is a must.
That being said, and considering the fact that the move into the 116 was a corrective one, and not an impulsive move, it means we’re looking for a flat pattern and after 122.50 an impulsive move lower to break the 116 lows should follow, hence the take profit.
A move above 125 is clearly invalidating this scenario.
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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