During the last week we saw a strong bearish move on the pair, which then reversed and on the weekly chart formed a hammer candle which makes us believe that the downwards move was a retracement and the uptrend is still valid. From this candle we expect that bulls will gain confidence and continue uptrend move to test the Monthly R1 area. Price last week closed just above the Monthly PP area so we may expect that this area is now an area of support and this may be an additional incentive for bulls to kick in and give strength to USD.
Our market positioning for the USDJPY pair is bullish for as long as the daily candle is not closed below the Monthly PP. In case of a close below it, we will have to wait and see how price reacts to this area because then this area may be a strong resistance and we may have a change in direction of the move.
Our market positioning for the USDJPY pair is bullish for as long as the daily candle is not closed below the Monthly PP. In case of a close below it, we will have to wait and see how price reacts to this area because then this area may be a strong resistance and we may have a change in direction of the move.
Trade active
The pair tested the Monthly PP at 109.437 as we were expecting and then bounced of on the upside for more than 50 pips. Any long position initiated on this area before the rejection bounce now should be in profit. As the price action unfolds we still favor a higher probability bullish mood in the market and we expect the price to reach the Monthly R1.Trade active
Our Sunday's analysis are still valid for the USDJPY pair as well as the long position taken on Monday with the initial price at Monthly PP 109.437. USDJPY bulls are still strong and active and we still expect a move higher, however it looks like that for this week we will not reach the Monthly R1 at 110.763, maybe we will reach this level by next week.
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.
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.