USDJPY breaking below its 3 years trend line
Updated
As you probably know for the last 3 years USDJPY was under pressure inside a symmetric triangle. During this time it bounced couple of times between upper side and lower side of the triangle and everytime moved couple of hundreds pips. Recently it seems breaking below the lower side for the first time in the last 3 years. It can be a significant sign for a massive downward movement as chart is finally coming out of the compression zone.
Fundamentally trade war between US and China and recently adding tariff to Mexican imports caused a lot of pressure on the dollar shoulder. On the other side weakness of Euro and GBP creates a good opportunity for Yen to become the top gainer in the past few weeks.
Today Fed's Powel will speak and just in a few days we will hear about ISM release and NFP. All of these important news can throw down USDJPY a few hundred pips.
The other scenario is if this break out will become a fake breakout then market will get energy to start another bullish rally however I don't put more weight on this scenario.
Fundamentally trade war between US and China and recently adding tariff to Mexican imports caused a lot of pressure on the dollar shoulder. On the other side weakness of Euro and GBP creates a good opportunity for Yen to become the top gainer in the past few weeks.
Today Fed's Powel will speak and just in a few days we will hear about ISM release and NFP. All of these important news can throw down USDJPY a few hundred pips.
The other scenario is if this break out will become a fake breakout then market will get energy to start another bullish rally however I don't put more weight on this scenario.
Trade closed manually
The trade was closed just a few days after at 107.50. The reason was a doji candle following with a strong bullish candle which goes above the doji. It just gave a small profit around 47 pips.
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