Cracking Low Becomes Fake, Short-Covering Occurs ?

FX:USDJPY   U.S. Dollar / Japanese Yen
I think as follows.
It is not "Turn of Buying" by looking at Weekly.
but... there is a possibility the buyer is waiting at 107.40-00.

It is said many times, but I prepare for the movement of short-covering.
Recovery-High of decline is 108.73 / 75.
After breaking there, it's not too late that I switch to buy.

Because it has been resistance twice in "SellZone-C", I think deployment of long on short-term will occur by missing in the resistance. (1)

Weekend was closing lower.
First it might lows attack.
I am also assuming that cracking lower becomes "FAKE". (2)

What if the bullish move on USDJPY was the real bluffing fake? Do you think USD will be highly correlated with the FED ploicy of to QEing or stop QEing? Do you have any fundamental that could confirm that this cracking lower is just a FAKE?
shuyatake BondGirl.USGFX
Thank you for reply.
I'm sorry, my analysis don't consider fundamentals.
I will judge "FAKE", after the movement of breaking decline occurs.

However, I'm wary of effects by "QE-end".
It's downside risk of US-stock, lower interest rates.

In addition, Next year, We are faced with rate hike.
This is a support factor of USD, but it is also a downside risk of US-stock.
Thinking reaction of USDJPY is difficult for me.

Sorry for my dirty English.
+1 Reply
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