USD/JPY Bearish Market Flow: Whales Swimming South
The USD/JPY currency pair is currently in a bearish market flow, with the Japanese yen rising due to higher-than-expected inflation readings in Tokyo. The rise in inflation is likely to lead to more hawkish measures from the Bank of Japan, which would be positive for the yen. Other Asian currencies are remaining relatively stable as they await the release of the Federal Reserve's preferred inflation gauge, which is expected to remain above the Fed's 2% target.
From a technical perspective, the analysis suggests that the price of the USD/JPY is currently undergoing a short squeeze, with the uptrend being a supply line for confused and scared day traders. The analysis suggests that demand is following the dynamic trend line 20 dema and the Relative Strength Index (RSI) is showing a downtrend from a cycle high just above the 70 line. The RSI is below the midline and converging with price.
Based on this analysis, the plan is to close shorts and look for longs if the price crosses and settles above 131.120. No buy orders are being considered until the price reaches a new zone below the current level and close to the 121.50 zone. The expectation is for the price to fall to the 115.000 area.
It is important to note that this analysis is based on past performance and current market conditions, and that future market movements can be influenced by a wide range of factors. As such, this analysis should be considered as a guide rather than a guarantee of future performance.
The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.
From a technical perspective, the analysis suggests that the price of the USD/JPY is currently undergoing a short squeeze, with the uptrend being a supply line for confused and scared day traders. The analysis suggests that demand is following the dynamic trend line 20 dema and the Relative Strength Index (RSI) is showing a downtrend from a cycle high just above the 70 line. The RSI is below the midline and converging with price.
Based on this analysis, the plan is to close shorts and look for longs if the price crosses and settles above 131.120. No buy orders are being considered until the price reaches a new zone below the current level and close to the 121.50 zone. The expectation is for the price to fall to the 115.000 area.
It is important to note that this analysis is based on past performance and current market conditions, and that future market movements can be influenced by a wide range of factors. As such, this analysis should be considered as a guide rather than a guarantee of future performance.
The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.
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I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.
discord.gg/a7sfTVkgxc
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.