From investor to a scalper is a cycle of analysis in which we take one financial instrument each day and the analysis includes a detailed look at the value from the monthly/weekly to the H1/M15 chart.

USDJPY as a result of declines, which lasted from June 2015, exactly one year later reached near a critical support, converging very precisely with 50% of the Fibonacci correction from earlier gains. There, the supply force decisively weakened and after a few months of consolidation there was a very strong demand response, which resulted in a dynamic growth for the next three months.

USDJPY Monthly

Looking at the weekly chart, we see that these gains reached the downward trend line, where in December there was a supply reaction. Since then, we have seen calm declines that appear to be only a correction before the next growth impulse.


On the daily chart we notice that the market has been moving for a long time in a horizontal trend (consolidation). Currently price of this pair oscillates around lower limit of this box, and if only a strong demand response occurs in the near future, we could expect a rebound.

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Despite the fact that the market did not reach the lower limit of this consolidation, around 50 pips above that level a bullish response occurred few times.

On H4 chart we notice that the market is moving in consolidation inside which a smaller (yellow) box has formed, whose upper limit precisely coincides with 50% of the Fibonacci correction.


Breaking out in either side could determine the future direction of movement on this pair.


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