Correction even deeper
Last week I started Monday with the analysis of “USDJPY – will the correction deepen?” The title referred to the previous analysis of this pair, where the scenario described quite accurately was fulfiled and I considered the possibility of continuing the correction and deepen the falls: “Currently on the chart D1 the maximum on the MACD appeared and the indicator began to decline, which may indicate that the correction will take some time, and the quotations in case of successful overcoming of this trend line may follow the next support located at 112.75-85 level. “
So let’s look at the charts above, comparing the rate of the pair from Monday and the current one from yesterday’s close. You can see that the course not only dropped to the support mentioned in the analysis, but it defeated them and reached the next 111.75-85, where there was a clear demand response. A good analysis, however, is not everything … it is more important how we play it and how many pips we book. You can place one order and wait for the realization … but you can also play short episodes and after the price makes a pullback, repeat the order in the same direction. I closed 2 open orders this week and one opened last year. I collected more than 200p which is more than the entire maximum range of movement that the pair performed from Monday, which was 175p. In summary, we can conclude that the analysis and processing were effective. It is also worth paying attention to how exactly the price reacted to the demand zone (brown).
