This pair has been consolidating in a contracting triangle pattern that is about to be completed. This triangle pattern would also be a Wolfe Wave completion. There is also 2 harmonic patterns:
1. a POTENTIAL bullish perfect Gartley 2. a POTENTIAL bullish cypher
For the Gartley, the C point of the triangle marks the beginning of the CD leg. For the cypher, prices have been declining in the CD leg already with greater than 50% of it having already been completed.
MY TRADING PLAN When prices complete the triangle pattern/Wolfe Wave by reaching point E (as of the time of this post, it has NOT yet reached there), I will be selling this pair. I will hold these SHORT positions down to the Gartley completion and Wolfe Wave target line and close 30% of the SHORTS holding the remaining 70% to the completion of the cypher. I'm not ignoring the gartley as I do expect there to be some kind of reaction upon the Gartley being completed but I believe it will only be a brief retrace before resuming the march down towards the cypher completion. Therefore, I will hold a majority of the positions till then.
***NOTE: I am expecting a long-term decline on this pair. I have posted another LONGER-TERM trade on this pair (see Related Ideas: "TRADE: USDJPY:2 LONG-TERM Patterns Could Yield 1000+ pips"). So depeinding on PA, I could possibly hold this trade for MUCH longer.
*DISCLAIMER: Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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