USD/JPY has been on a strong rally since breaking a major support a few weeks ago. Since then price has had a lot of bullish momentum helped by hawkish FOMC statements from the Fed and has risen quickly to a major daily resistance zone. Seeing how price reacted to this zone at the end of the week shown some rejection and a break in the minor support and TL. We then moved to a major support zone and started some consolidation.
This week I would look for a retest of the new resistance and TL this could be a possible sell setup if we don't move past that zone. We have a lot of fresh zones created from the move up so these will fill up in time and we can use these for downtrend targets. Some consolidation is also a possibility due to the quick rise in prices over a short period of time. We can use the correlations with gold to get the best timing possible to get on a move which ever way it goes.
Longer term fundamentally we could see a softer dollar due to rising geopolitical issues but the good news is that the Fed sounded fairly hawkish in its plans to continue to raise rates and balance fiscal policy.
This week I would look for a retest of the new resistance and TL this could be a possible sell setup if we don't move past that zone. We have a lot of fresh zones created from the move up so these will fill up in time and we can use these for downtrend targets. Some consolidation is also a possibility due to the quick rise in prices over a short period of time. We can use the correlations with gold to get the best timing possible to get on a move which ever way it goes.
Longer term fundamentally we could see a softer dollar due to rising geopolitical issues but the good news is that the Fed sounded fairly hawkish in its plans to continue to raise rates and balance fiscal policy.
Comment:
So far its good
