Yen’s Trading Range: Is Accumulation Occurring?
Leonardo Barata | Aug 25, 2016 01:57AM ET
Dynamic trend: Turned up
Background: W1 – weak; D1 – weak
Phase: Accumulation
On the daily timeframe there was bullish activity (signs of accumulation). In point 1 there was “Selling Climax” on a very wide range and very high volume. In point 2 there was a “Test” with a high volume. The market is not ready for a long-term upward trend, as the volume in point 2 is high, and the «Test» has failed, thus showing the weakness of the market. The accumulation continues.
On TF H1 in point 1 there was a “Shakeout”, followed by up-bar with a wide spread. The volumes were very high. Point 2 was the successful “No Supply” followed up bar that tells us that demand has overcome supply.
In point 3 it was a “No Supply “. This low volume in this spot, shows lack of the interest from the professionals to breakdown the low of the range.
Suggested Strategies
The end of the accumulation phase in the medium term should witness the breakdown of the level 101,150. At the moment, VSA is showing supply, and we may see a correction to the 100 level again, which may give a long opportunity. It’s important that the price doesn’t close below 100, as that would mean that prices will probably test the low at 99.5.
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