USD/JPY Four Support Lines and Something Else?!
The US dollar has initially tried to rally during the trading session on Wednesday but then broke down towards the 200-day EMA. At that point, it’s likely that the US Dollar trying to find support and the market could explode to the upside with some kind of “risk on” type of situation.
Beyond that, there are a whole host of issues to think that the market may struggle to break above the 50% Fibonacci retracement level (on the fall from 114.55 to 106.41). At this point, the market can break above that level 109.50, then it’s likely that we could see a significant move higher. That being the case though, we would need to clear the 110 level to have the signal that we are going much higher.
All things being equal, looking at the 50-day EMA sloping higher and reaching towards the 200-day EMA, it shows signs that we could continue to go higher, as this is a major longer-term “buy-and-hold” signal. This is the favorable case for us until the 108.64 support holds. You can see on the chart why this area is so key.
Consider also the nonsense coming out of the United States Congress will of course cause some issues later in the day, just as Jerome Powell talking well. Keep an eye on U.S. Treasury yields too.
What do you think?
Beyond that, there are a whole host of issues to think that the market may struggle to break above the 50% Fibonacci retracement level (on the fall from 114.55 to 106.41). At this point, the market can break above that level 109.50, then it’s likely that we could see a significant move higher. That being the case though, we would need to clear the 110 level to have the signal that we are going much higher.
All things being equal, looking at the 50-day EMA sloping higher and reaching towards the 200-day EMA, it shows signs that we could continue to go higher, as this is a major longer-term “buy-and-hold” signal. This is the favorable case for us until the 108.64 support holds. You can see on the chart why this area is so key.
Consider also the nonsense coming out of the United States Congress will of course cause some issues later in the day, just as Jerome Powell talking well. Keep an eye on U.S. Treasury yields too.
What do you think?
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💡 If you want to know on what basis we make our entries, get in here: t.me/trendlinefreetrade