Thursday, December 6, 2012

USDJPY Channel And Flag USDJPY Channel Trade
Price is consolidating in a parallel channel on H4 chart. It looks like a flag formation as well. 

The move from 79.21 is consolidating after hitting 82.83, recent highs of 22-Nov. Since then price is consolidating in channel. USDJPY Short Trade
It looks like a Bullish flag formation as well. Normally price jumps once channel is broken above. But price can move down as well on break of channel's lower trendline. 

I will be closely watching channel break. And would like to go long on break of upper trendline and short on break of lower trendline.

But just above the channel comes a daily trendline which has restrained pair since April-2011. That trendline might be tough to break. I mentioned this trendline before [here].

My strategy is to go long on break of channel upside but will book my trade and will go short on touch of daily trendline. 

If pair breaks channel lower, then I will go short.

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