Today i experienced a stop hunt by the market makers. I experienced a draw down of at least 18% on my account as it happened. I guess this is what happens when you trade the same way the market makers do. 

You have to remember, when you trade the way they do, you have to be prepared to experience the draw down. Always remember, the market will and can be irrational for as long as it chooses. 

So the chart below shows where we are at right now. 

It looks as thought USDJPY was forming a cup with handle. However as you can see, the handle has exceed and past 50 %  of the previous move. 

The 50 day has been acting as a wall of resistance. Today’s stop hunt failed to even get above the 50 day, which gave me the impression that the MM were taking out shorts that have been placed. 

The double top is a massive clue that the mm are potentially looking at taking price lower so they can fill their long orders at lower prices in anticipation of closing them higher. When this happens, who knows, but it will.

Price is currently trading below the 50 day and the 200 day and even the 21 day. All these factors are ok, but whats important is the previous area of consolidation is in sight and if price continues to fall further, then the previous run up will be tested. 

Whats important is the successions of higher lows, and lower lows