ForexWeeklyAnalysis
Long

General Market Outlook: USD/JPY Consolidation > Continuation Up?

FX:USDJPY   U.S. Dollar / Japanese Yen
261 0 0
For the past few months, USD/JPY             has been stuck within a consolidation channel, with the majority of price action at the center. So at this point, it's become pretty obvious there's a pending big move but the question is, which direction is it going to be?

1. From a technical point of view, if price continues to move down, the next bounce off the lower channel lines should be the last because it coincides with the long term upward trend line (black). So assuming the black trend line holds, price should be moving upwards and out of the consolidation channel.

2. Based on BOJ's monetary stance and their goal to raise inflation levels to 2%, I'd suspect the next move will be a continuation upward push.

3. However, considering this is so obvious, will the "big money" go against BOJ knowing that they'll step in? If they do somehow push USD/JPY             down, it can go down quite a bit and as far as bulls are concerned, don't be fooled and think the 100 level will hold as solid support. Yes, there will be large buy orders sitting at 100 but I'm fairly positive that it won't hold on the way down due to the lack of confluence around that level. Most of the support is sitting above (100.80) and below (99.50/99.00).

Personally, I'm leaning towards long. What about you?
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out