USDJPY Overbought
The week has not finished as yet, but what is developing is interesting.
When price trends , its tend to not move too far away from from Equilibrium. With Ichimoku this is represented by the Tenkan Sen and Kijun Sen lines.
In a steady uptrend or downtrend price moves within a distance of these lines with a given regularity. This can be seen in the chart from Jan 21 to April 22.
When volatility increases and price moves to " far away " , then a reversion to the mean (equilibrium) will take place. This has occurred recently ( Early May 2022) .
The current week is too far away from equilibrium price. The candlestick may become a Shooting Star .
The Weekly Tenkan Sen is the obvious target for a retracement at 1.31 ( a significant weekly Support/Resistance Zone) .
The KUMO is extremely well established and likely we will see price break 1.37 following an anticipated retracement.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.