Yesterday, I upload analysis of this currency that it has a potential breakout in near term. After seeing the market closing this morning, I saw hints about a correction will happen. You see , USDJPY basically now under a large consolidation pattern between 102.578/104.808-114.725/118.625. So, right now, USDJPY facing the major resistance (long term resistance). It is not surprising to me if this USDJPY needs some time to take this resistance.
Question probably appear, why not USDJPY comes down again to the support 102.578/104.808? Well, I am sure many traders also try to short on this major resistance or waiting for sell setup. But, if you see carefully about the chart of this USDJPY, you will see something different happen in the chart that is a mid-term consolidation formed. For me, it is a sign that market already made a preparation to face the resistance.
But that is just a theory, we focus on market presence and one thing for sure is the trend still bullish but now market move sideways, and give vibes to do a correction. And this is actually give opportunity to buy USDJPY in the right time.
Question probably appear, why not USDJPY comes down again to the support 102.578/104.808? Well, I am sure many traders also try to short on this major resistance or waiting for sell setup. But, if you see carefully about the chart of this USDJPY, you will see something different happen in the chart that is a mid-term consolidation formed. For me, it is a sign that market already made a preparation to face the resistance.
But that is just a theory, we focus on market presence and one thing for sure is the trend still bullish but now market move sideways, and give vibes to do a correction. And this is actually give opportunity to buy USDJPY in the right time.