Last week as expected, constantly offered good opportunities for long positions as the price action was pure bullish the whole week. The move was very strong and bulls pushed the price for more than 130+ pips during the week, with only one retracement which represented very good opportunity to add more to long positions. The price at the end of the week reached the Monthly R1 and as expected found initial resistance at this area. This area represents also a strong structure where we expect the price to struggle as we have a cross of the Monthly R1 and the trendline drawn on the green line. We expect this area to hold as we have this strong structure and price to drop down again to the Monthly PP. From the review of these conditions we expect that this week's theme will be bearish price action, of course if the M_R1 and trendline are strong enough to hold the bulls. We will look to open a short position somewhere around the M_R1 and try to ride the price down to the M_PP. As a hard SL will serve the area at 111.35 which represents the nearest high on the move. Our analysis will be invalid if M_R1 and trendline are broken and price continues an upmove.
Note
During the first two trading days for this week, the pair had a drop in the price, at the moment of writing about 100+ pips drop. The price opened very near but below the M_R1 and did not test it in order to trigger a position for us, but then the price got rejected in this area and now is approaching the M_PP at 109.437. This area last week represented a strong support and a very good entry point so we will be looking at this area for possible long positions.Note
The USDJPY pair again got a bounce and strong bullish run to test the M_R1 area at 110.763 where again it encountered strong resistance by bears and the price got rejected and dropped for more than 60+ pips. Our pending sell limit order was at 110.763 but was not triggered for very few pips. As it looks for now, the pair will not give any more opportunities for this week as tomorrow is Friday and we will not initiate any position on the market to keep it open for the weekend.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.