USD/JPY SELL PLAN: 08/22/2018

The price of USD/JPY is very volatile so its analysis become more difficult for short term trading.

Last week my trading plan with a BUY was too hurry. I switched from sell to buy immediately as a revenge. Fortunately, I still got out with some profit because I moved stop loss to break even when the price went up.

My lesson is that I was over trade. I need to take a break to analyze market more and follow it.

Today, I come up with a USD/JPY plan, which can be valid for a few trades.

Check out the chart below, we see the price was formed two trendlines while it is in the down trend.

I will put my attention at the trendline 1 and if it holds as resistance, I will sell. Moreover the Fibonacci 38.2 level was near the at that possible resistance so the SELL has high probability to win.

This Technical Analysis Pattern is the attempt to catch the Top and Bottom, so I only use a small trade to test it.

If my system does have a Sell signal, I will add more trades.

Otherwise, if price breaks up the trendline 1, I will watch how it plays out and stay out for other opportunity.

The target would be the near trendline 2.

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