9 Mar 2015

WAITING FOR A BREAKOUT 2

USD/JPY DAILY

Couple of weeks ago we talked about using ADX indicator to confirm the breakouts of large consolidation ranges like this one here on USD/JPY. (Find the article HERE)

So, as the rate has made a technical upside break, we can start looking for the necessary confirmations.
  1. The ADX line is trading above ''25'' indicating a strong range. (check)
  2. The ADX line has broken the consolidation formation on the indicator itself. (check)
  3. The latest DI+ peak is trading above the latest DI- peak (36).
As the DI+ line is still trading below the previous DI- peak we can't enter a long trade yet as it is indicating that the downside momentum is still the prevailing one.

Of course, that can change if we see further upside momentum.

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