One of the things we look out for after consolidation breakouts, is the re-test of the breakout level. It’s here we target ‘breakout & re-test’ type signals
We’ve got something here today on the USDJPY daily chart, but it was not as convincing as I hoped it to be at the New York Daily Close.
The candle didn’t have a very strong close, and actually closed slightly negative for the day. Generally the strong signals will have a strong close in the direction you’re aiming to trade.
I am not writing this off, the locations is perfect, the signal is a little weak. So it’s just missing some elements to be that text-book perfect type setup.
Traders could look for breakout entries here to confirm bullish breakout momentum. If the setup does play out, we could see a nice long extended up move as the weekly chart plays out another cycle of it’s consolidation -> push -> consolidation -> push pattern.