[USDJPY] How to trade the Coil...[Part II] It went out!

Is this the Breakout ?  :)

Related Post: [USDJPY] How to trade the Coil...

Support/Resistance Lines vs Zones

Every trader in this world loves or hates Support & Resistance levels simply because they play an important role in any kind of trading system. Fact is that most of the traders lose money at Support & Resistance levels. Why? Just because of GREED! < You always want to catch the exact top/bottom? Don't ya?

I used to trade with age old Support/Resistance lines for a long time & after going through a lot of hardships, I found a new way to demarcate support/resistance levels in charts! Not as lines but as Support Resistance Zones.

How to mark Support/Resistance Zones in your charts? 

This is how I roll! :D
I use Trend Channels in my trading platform to identify Support/Resistance Zones!

Start to see Support/Resistance levels as Zones! You'll be amazed by the results!

Stay in touch for more updates, new techniques & trading strategies!

Cheers!

Sachith Sumanathilake
Sri Lanka

[USDJPY] How to trade the Coil...

I saw this potentially bullish Symmetrical Triangle Pattern formation for last few weeks in USDJPY & just thought to write about it a bit!

The Bigger Picture!

Let's look at the bigger picture...

If we look at the monthly chart of USDJPY, we can clearly see that this sexy lady is approaching a major bearish zone! I don't expect it to break this Resistance Zone in a single shot! Most probably we'll see a bearish correction once after the price action reach this multi-year resistance zone.

USDJPY was stagnating around this price level for last few months due to indecision among the traders about the future direction. We can clearly see a Coil or Symmetrical Triangle Classical Technical Chart Pattern in this greener circle. Let's zoom in! 

USDJPY Weekly Chart

How many of you believe this as a Symmetrical Triangle Pattern? 

Then, what about the Price Target ? 

x = x, isn't it? 

Let's see how it goes. And don't ever forget to have your stop-loss ;) 

[My Opinion] : 

USDJPY has the potential to reach 105.00-107.00 before next big downturn!

I can be embarrassingly wrong!

Good Hunting to you!

Sachith Sumanathilake

Sri Lanka