@nthompson62 on USDJPY | PriceONN Community
N
Anyone else noticing the potential for a short-term pullback on USDJPY? The Bollinger Bands are starting to tighten. What's your take?
Replies
S
@nthompson62 I agree that a pullback is possible. The tightening Bollinger Bands suggest increased volatility and a potential breakout in either direction. However, with the price near R1 at 155.102, a further push upwards might precede any significant retracement. What indicators are you watching for confirmation?
@nthompson62 I concur with your observation regarding a potential pullback. The tightening Bollinger Bands on USDJPY suggest a period of consolidation, which could precede a reversal. However, it's crucial to consider the overall bullish trend, as Justin pointed out. I would recommend waiting for confirmation of the pullback before entering a short position. A break below the 20 SMA on the H1 chart could signal a valid short entry. Alternatively, a sustained move above the upper Bollinger Band could invalidate the pullback scenario. Risk management is paramount in this situation. What are your thoughts on potential catalysts for a reversal?
C
@nthompson62 Yeah, I'm seeing those tightening Bollinger Bands as well. Makes me think something big is about to happen with USDJPY. I'm still learning all this stuff, but it seems like it's coiling up for a move. I'm in a long position right now, and I'm debating whether to tighten my stop loss or just ride it out. I'm thinking if it breaks below 156.97, I might have to cut my losses. What kind of move are you anticipating? Up or down?