Over the next couple of weeks, I would think that this pair will be highly driven by Brexit.
It potentially could turn in any direction but in the rewards for the shorting the pair down to 1.18 is strong. If things turn confluence at the lower time frames should be monitored allowing with price action. However, this would need to close above the daily...
We are expecting news for the dollar to weaken, and USDJPY is set to go long to 113.60/114. If you don't know, Gold coincides with this pair and will, therefore, be short to my 2 TP's @1277 and, 1260.
There seems to be a slightly deformed H&S with the right shoulder taking shape, I expect that this would form when the market opens.
The first entry I would look...
A weak dollar is trying to push markets down.
USDJPY is set to be in a long position up to 113.60/114. As this pair coincides with gold, we're expecting to short this back down to its last low of 1280. This could even go lower beyond 1277 and hit daily support from October @ 1260 before seeing the upside of 1350.
A slightly deformed H&S with a right shoulder...
I would expect gold to pullback to previous support @ 1303.90 before going short. Fundamentals on the long forecast show that the lowest price that gold will hit is 1204. The forecast shows that potentially gold could dip lower than 1204, reaching its lowest point of this year at 1150 before going long and seeing highs of 1400 mark.
TP1 @ Support 2, 1277.600
TP2...
Short idea; Daily rejection at the top of the channel.
The candle must close below previous resistance @ 1.31900 for a continuation of the downtrend.
Entry below 23.6 fib @ 1.3200
TP1 @ 0.5 fib, 1.30100
TP2 @ 61.8 fib, 1.2900
Price action at TP1 will be monitored to see if TP2 is the new target, expect a pullback. Should it break at TP2, I would imagine it...
Daily rejection candle at the top of the channel.
This would need to close below previous resistance @1.3200 to confirm a downtrend. I would expect TP1 to be at around 1.300, 50 fib. If this continues to draw down then I would expect this to continue past the 61.8 level and bounce off the trend line before going back up the channel.
Price action past 61.8 will...
