USD/JPY Weekly Chart Levels & Patterns To Watch
Monthly price action looks to be in a major wedge and approaching upper trendline resistance where we have seen selling power in the past . November and December 2017 and December 2016 there was a respect of the trendline and a significant move down from it.
It looks like there was a minor engulfing candle 2 weeks ago with 2 weeks now of indecisive price action. We are still in the current impulse wave to the upside which is almost touching the 0.236 pullback zone of the last major wave down from 114.588 to 104.611. That is significant because it coincides with this major wedge upper trendline and both seem to be major in strength. The overall major momentum is bearish so the power leans to the last major wave down over this current impulse up.
Stochastics and Rsi are both overbought and turning to the downside but the trendline to the upside has yet to break and signal confirmation of pullback. Most likely price will continue short term momentum to pullback to the downside 0.236 fib zones of current impulse up around 106.986. The 106.986 level is also important because it is around the same zone as the lower trendline support of the major wedge. The price action has respected these major levels in the past and most likely will continue to moving forward.
If price action does pullback to 0.236 fib zones and lower trendline support it will also continue the harmonic which is forming giving point C . With major patterns and levels pointing more to the likelihood of the pullback and continuation of current short term momentum I will be holding a bias to the shortside going into this week. This weeks close will be important to watch for levels above 112 would signify the breakout of the major wedge and continuation of the intermediate momentum up to 113.68 zones. A close and levels below 108 would confirm the move down and pullback levels around 107 zones to continue short term momentum.
Back in January 2017 price had a major doji and snap before it turned so a retest of 111.367 is very possible this week or next before the drop. There are a few major news events this week so the close of the candle giving direction seems possible. When price action is at these type of levels there is alot of indecision in the market and it is best to wait for confirmation of direction.
With 8 weeks of straight bull impulse I would lean to the pullback bias but that type of power does not turn over easy and we are approaching the tip of the wedge already. An extension of the intermediate momentum and a breakout of the wedge is more likely each time it tests the upper trendline.It would not be outside reason to think the breakout could happen at this test. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist @davistradingforex
It looks like there was a minor engulfing candle 2 weeks ago with 2 weeks now of indecisive price action. We are still in the current impulse wave to the upside which is almost touching the 0.236 pullback zone of the last major wave down from 114.588 to 104.611. That is significant because it coincides with this major wedge upper trendline and both seem to be major in strength. The overall major momentum is bearish so the power leans to the last major wave down over this current impulse up.
Stochastics and Rsi are both overbought and turning to the downside but the trendline to the upside has yet to break and signal confirmation of pullback. Most likely price will continue short term momentum to pullback to the downside 0.236 fib zones of current impulse up around 106.986. The 106.986 level is also important because it is around the same zone as the lower trendline support of the major wedge. The price action has respected these major levels in the past and most likely will continue to moving forward.
If price action does pullback to 0.236 fib zones and lower trendline support it will also continue the harmonic which is forming giving point C . With major patterns and levels pointing more to the likelihood of the pullback and continuation of current short term momentum I will be holding a bias to the shortside going into this week. This weeks close will be important to watch for levels above 112 would signify the breakout of the major wedge and continuation of the intermediate momentum up to 113.68 zones. A close and levels below 108 would confirm the move down and pullback levels around 107 zones to continue short term momentum.
Back in January 2017 price had a major doji and snap before it turned so a retest of 111.367 is very possible this week or next before the drop. There are a few major news events this week so the close of the candle giving direction seems possible. When price action is at these type of levels there is alot of indecision in the market and it is best to wait for confirmation of direction.
With 8 weeks of straight bull impulse I would lean to the pullback bias but that type of power does not turn over easy and we are approaching the tip of the wedge already. An extension of the intermediate momentum and a breakout of the wedge is more likely each time it tests the upper trendline.It would not be outside reason to think the breakout could happen at this test. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist @davistradingforex