As expected and mentioned in previous USDJPY forex analyses and forecasts, the American Dollar is reacting strongly to a strong monthly demand imbalance, and it’s rallying much higher. This is a technical and price action analysis similar to EURUSD forex technical analysis. A similar strong imbalance gained control a few months ago, and it’s been rallying strongly ever since.
A strong monthly demand zone of around 103,42 has gained control on the USDJPY Forex major, so going short-selling USDJPPY is not a good idea. New buying opportunities are being created, and a new weekly imbalance is being created underneath.
Take a look at the USDJPY monthly timeframe analysis update below. Every candlestick represents a month. There is a clear bullish bias on USDJPY.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances are ideal for beginners and those with a full or half-time job. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
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