USDJPY
Folks, something has happened last week to change the direction of this pair. It's more than the FED rate announcement, I think it's the perception that USD is on the verge of topping out against ALL CROSS pairs, including USDJPY. In last week's trading sessions, we were supposed to see an an outside break out from the channel that defined the bullishness from the Feb 6th lows of $111.77 to March 13th highs set at $115.33. Instead we got a week long down reversal followed by a test to close out the week at the bottom end of the channel. What's going on here ? Is this just a pull back ? Have you noticed all other USD cross pairs ; namely EURUSD, USDCAD, GBPUSD, experiencing sharp reversals, looking like they just got a fresh air of breath ? As a result, in next week's sessions, for USDJPY, I'm paying attention to $112.17 level, representing an outside break down from the rising sloping channel. Should price action fail to reverse back into the channel, then look forward for price action to erode anywhere into the green range, as shown in the chart, over the next few trading sessions. Helping this action would be a weakening USD against most cross pairs, higher gold price, & higher Brent oil price. Folks, take out the popcorn bowl, cause this is gonna get interesting.
