In a perfect world, USDJPY would go up to 113.195(serving as our potential neckline), reject this price level and make a 61.8 retracement to form a Right Shoulder and rally for over 135pips(Christmas comes early!!) However, such a world is non existential. Looking closely at price action, NFP results came in worse than expected and price wicked, failing to make a new daily low despite the dismal data. Bearish momentum still prevails but unless the demand zone,112.315(served as a wonderful target area in the past days) get convincingly violated, then bulls will be gearing up to enter the market. A break above 113.195 will certainly gain my attention.
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My speculation of the inverted H&S has been nullified as price went to test the lows at 112.240. The H4 demand zone is still holding and a successful break of this region would see price drop to 111.383
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The Demand zone has held once again proving its validity sending price upwards. Following this shift in price actions, eyes are set towards 113.963 where the next leg of the pair shall be determined.