Safe Haven YEN Stuck in a Triangle After Flash Crash!Had the FED kept on raising the rates, this pair would have shot higher and higher, however the outlook for 2019 does not look good for the USD as the FED come under increasing pressure from the US president. Currently according to the projections of dot plot the FED plane to raise the rates 2 times this year, however this may not even happen due to many factors. The flash crash that happened a few days ago was triggered due to the risk aversion by the market players which left the USDJPY trapped in a triangle.
The price may break to the either side and target the red line support and resistance as indicated in the charts. its advised to not make any move until the pair breaks the triangle on the weekly charts to either side. The fate of this pair is balanced on numerous things including the trade talks between china and the US. Should the talks go well and both parties can come to a stable agreement the pair would likely accelerate to the upside. On the flipside, if talks do not go good for both parties, expect this pair to break to the downside. depending on what happens then we can place a swing trade accordingly.
If you wish to day trade, then its advisable for the flash crash to settle and form clear price action that can support claims based on technical analysis. at the moment on the daily charts and 4 hour chart the price action is forming but it is still not clear. the target to day trade would be based on the either side of the triangle trendline.
It remains to be seen what will happen to this pair fundamentally in the coming days. shall there be any updates i will post them here
