The technical position for USDJPY is constructive. First of all the price has been in a 6 month uptrend (March Low).
The recent correction that bottomed at the 200-days simple moving average has probably completed as it took the shape of a head and shoulders continuation pattern in this case.
We broke earlier above the neckline of the pattern and extended the upside towards the 1.618 extension for the latest minor bearish wave. In addition to projected ascending resistance for the short term wedge formation.
Stochastic is in overbought zone and that's regular in an up-trending market.
If we get a short term pullback from this resistance area, it could be a new opportunity to get into the main uptrend, with 114.10-114.50 areas as an upside target.
It is always a good idea to wait for confirmation to trigger your trade, I personally use the four hour time frame for the final trigger.
The recent correction that bottomed at the 200-days simple moving average has probably completed as it took the shape of a head and shoulders continuation pattern in this case.
We broke earlier above the neckline of the pattern and extended the upside towards the 1.618 extension for the latest minor bearish wave. In addition to projected ascending resistance for the short term wedge formation.
Stochastic is in overbought zone and that's regular in an up-trending market.
If we get a short term pullback from this resistance area, it could be a new opportunity to get into the main uptrend, with 114.10-114.50 areas as an upside target.
It is always a good idea to wait for confirmation to trigger your trade, I personally use the four hour time frame for the final trigger.
Comment:
Upside target resistance was hit. Now look for a rejection.
