USDJPY Trade Analysis (H&S FORMING 12H)

Good Morning Everyone,

The USDJPY has setup a nice Head and Shoulders formation.

-When looking at the 12H chart, we can see that during the formation of the left shoulder, volume is rising. During the forming of the head, volume declines. Volume resumes rising during the formation of the right shoulder. Volume is a very important factor when trading the H&S formation and is one of the underlying reasons the formation is practical. Without the proper volume setup, the formation is likely invalid. The current setup is a great example of how volume levels should look when trading the H&S.

-Price has recently moved above the 1D trendline. A close below this line on a lower timeframe may signal a good entry area.

-Price has settled below the POC (point of control). This refers to the highest concentrated area of volume over a set period. This line can act as resistance or support. This area offers great entry points for trades.


*Thanks for reading. Remember to always due your own research prior to entering trades. You should always have multiple reasons to enter a trade. Best of luck.*



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Chart PatternsForexTrend AnalysisUSDJPY

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