After an extended pullback on the USD/JPY daily chart, we think it is time for the pair to revert higher.
A bullish divergence formed with the RSI (2) and a bullish pinbar formed on after a failed attempt to break below 130. Being a round number, there's reasonable chance of demand down at that level, and yesterday's up day is part of a 3-day bullish reversal (Morning Star).
- The bias remains bullish above Friday's low, although bulls could seek bullish setups on lower timeframes if prices pull back towards Friday's high - or wait for a break of yesterday's high to assume bullish continuation.
- An initial target is around the 38.2% Fibonacci ratio / 133 handle
- A Second target could be around the monthly pivot / 200-day EMA / 50% retracement level
A bullish divergence formed with the RSI (2) and a bullish pinbar formed on after a failed attempt to break below 130. Being a round number, there's reasonable chance of demand down at that level, and yesterday's up day is part of a 3-day bullish reversal (Morning Star).
- The bias remains bullish above Friday's low, although bulls could seek bullish setups on lower timeframes if prices pull back towards Friday's high - or wait for a break of yesterday's high to assume bullish continuation.
- An initial target is around the 38.2% Fibonacci ratio / 133 handle
- A Second target could be around the monthly pivot / 200-day EMA / 50% retracement level
Trade closed: target reached
133 target reached, and prices have since pulled back and are now considering a break above last week's high having built a higher low above 130.
Related publications
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.
Related publications
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.