Yen intraday squeeze

Morning Dynamic Traders

I'm looking at some intraday possibilities today. I usually focus on Daily charts for swing opportunities but part of my TP is to introduce variety to my trading so I'm looking at smaller timeframes today.

Below is the 60min JPY chart. As you can see price plummeted at the end of last week, likely to be as a result of NFP. Since then price has been consolidating and we now have a squeeze formation.

















Let's look at the odds:
1. Overall higher TF's suggest a downtrend
2. Price is below the VI which is acting as R
3. In addition to the VI we have the TL and RN resistance cluster
4. MACD divergence

Odds suggest price may weaken - but there's no room for second guessing in SM trading. The markets will need to show its hand first (which inevitably will be soon), so all eyes on the Yen. My preference is a breakdown in price for a short entry. There are a couple of support levels below which should be taken into account in your own analysis.

Great trading!
Sonia Molina