There are probably a lot of different ways that you could look at that one but it seems that the market broke to the downside out of the original flag and tried to test 100.00 which has historically been a pretty tough support point before it was broken a few weeks ago. Some traders only consider the close price as the truest price so looking at it that way you could say that the bull flag is still in tact but I think most would agree that there is not a flag there anymore as a result of that long doji candle.

There is however another pattern that we have covered which has formed if you look to the low on the 17th and draw a line up that formes the bottom of the pattern. Can you guess the top?

Also another thing that I am seeing here is that the top of that old flag is also the resistance point formed by the downtrend line on the daily so may want to check that out too.

Best Regards,
Dave

Dave, overall it seems to be a large triangle now, agree?

Hi Jay,

Looks like it:


Anything else you notice off hand about this pair?

Best Regards,
Dave

What else?

Thanks,
Jay

Nothing in particular just wanted to see if you were looking at any additional timeframes or indicators on the chart and saw anything that might be worth noting.

Best Regards,
Dave

regarding the USD / JPY pair : it does look like the signals will crossover in MACD (daily chart); however, how valid are the signals in MACD if they cross and they are under 0?

Thanks,
Jay

Hi Jay,

I think in general most traders would consider a cross valid regardless of whether or not it occurs above or below the zero line, although most that I know would not trade on that alone.

Best Regards,
Dave

So much for that bull flag, right
o.k., so if it crosses and tends to go more away from 0 , we are most likely looking at a pretty good short here, correct?

Thank you,
Jay

Not sure are you basing that opinion on anything besides the MACD and if so what else would you like to see happen at the same time?

Best,
Dave

Hey Dave,

Based on the drawing of channels starting at the top of 114.7 down to about 101.8 looks like this could be a good short on the daily chart soon. What is your take on looking for an entry on the 60 minute chart?

regards,
Jay