We can see from USDJPY chart that price action so far this year is a rerun of high-consolidate-breakout-throwback sequence that played between late 2013 to Q3-2014. That previous 52-week high is going to play an important role.
For USDJPY its all part of the plan
- USDJPY touched a high of 105.43 in December 2013.
- It went into consolidation mode that lasted for months.
- 2013 high was broken in September.
- Rally was terminated by the high of a parallel channel drawn from price lows.
- Price promptly did a throwback to find support back at 105.
- Fast forward we see the price action repeat as USDJPY sets trading high in December 2014 at 121.85.
- Multi-month consolidation mode.
- Find high at top of channel.
- __________________________ (Fill in the blanks).
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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