Interesting Price Action USDJPY

A strong performance on the USDJPY has produced a potential bullish reversal signal following last week’s decline.

The recovery today, though the market has yet to close, has seen a very weak open fully recovered. This could be significant, particularly with Friday’s and today’s move being on strong volume. The two day candle-stick pattern which a close around current levels would produce, a ‘Bullish Meeting Line Pattern’. Though this requires bullish follow through over the next couple of days if it is going to be significant.

Below shows the USDJPY chart today, at around 2pm New York time, with an example and description of the ‘Bullish Meeting Line Pattern’ below. 

One final point. The price action of the past 2/3 days sets some clearly defined levels pivotal moves. Firstly if the market can continue to recover and move above the high of last Thursday 99.14 high, confirmed by a move over 99.67, the 20th Sep high, this should pave the way for strong further gains. On the other hand a failure to continue yesterday's recovery and a drop below yesterday's 97.49 low would be very damaging, and could see some strong selling pressure. - If neither scenario plays out, then the failure to breakout of either side of the recent range within a few days would suggest further lackluster trading on the pair.   

Self-Beleif - Inspiration Poem. - 'The Man Who Thinks He Can'.

In the constant battle for success in trading, there are many qualities needed to overcome the many hurdles put up by both the market and ourselves. People may possess these qualities in varying measures and differing degrees, however there is one quality which all people need to possess: 'Self belief'. - Without this, you are almost certainly beaten already, and when you lose this, the perils are many.

'Self-Belief' is a quality shared by winners across all fields, from sports, to business, to trading. There is a wonderful poem, written about 100 years ago, which nicely captures and summaries this point. - I advise many of my trading clients to print this poem off and keep it close to hand:

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The Man Who Thinks He Can.

By Walter D.Wintle.  

If you think you are beaten, you are
If you think you dare not, you don't,
If you like to win, but you think you can't
It is almost certain you won't.

If you think you'll lose, you're lost
For out of the world we find,
Success begins with a fellow's will
It's all in the state of mind.

If you think you are outclassed, you are
You've got to think high to rise,
You've got to be sure of yourself before
You can ever win a prize.

Life's battles don't always go
To the stronger or faster man,
But soon or late the man who wins
Is the man WHO THINKS HE CAN!

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 The Poem is also known as 'Thinking', or 'Its all in the State of Mind'.




Image "Winners On Podium" by sscreations. Courtesy of http://www.freedigitalphotos.net/