3-bar bullish reversal on USD/JPY
Updated
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.
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