Waiting for breakout

As mentioned in yesterdays forex analysis we are in a squeeze on the USDJPY and are waiting for a breakout play on this pair.

The trend is clearly up but risk remains to the downside. We have a cluster resistance (based on previous support and fibonacci), trendline resistance, 35 trading bars since the low and MACD divergence.

With the squeeze taking place we could see a breakout in either direction so we need to apply the ESLT when this occurs.


Chart courtesy of Advanced GET. Data provided by eSignal.

Good trading.

Forex Analysts
Javid Shaik & Anne Chapman