Ascending triangle broke to the downside - further selling?
USD/JPY:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern (118.66/104.62). February had price elbow a touch outside the upper boundary of the aforementioned descending triangle to 112.22, though retreated lower and produced a shooting star pattern into the month’s end.
March breached the lower edge of the descending triangle, yet has recovered in strong fashion, leaving nearby demand at 96.41/100.81 unchallenged. Note current action is seen fading the descending triangle’s upper boundary.
Daily timeframe:
Since the beginning of the week, candlestick analysis emphasised an indecisive tone ahead of supply at 112.64/112.10. Thursday, however, put in a dominant bearish candle, filling a large portion of its body, and is now poised to grip the 200-day SMA value, currently circulating around the 108.31 region.
Beyond the noted SMA, price is tipped to soften towards demand posted at 105.70/106.66.
H4 timeframe:
Technicians will note the ascending triangle formation (black lines 111.47/109.33) had price break to the downside in early trade Thursday and also dethroned channel support (101.18). Active buying is unlikely to emerge on this timeframe until crossing paths with the 38.2% Fib retracement at 107.66.
H1 timeframe:
Starved of support, USD weakness across the board prompted a feisty decline Thursday, upsetting both 111 and 110 levels, with price currently trading within striking distance of 109. Demand, as you can see, is also present at 108.84/109.23, reinforcing the said round number. A violation of the current demand lays the foundation for a possible move to 108.
Structures of Interest:
Monthly, daily and H4 timeframes underscore the possibility of further losses, with the 200-day SMA at 108.31 set as an initial downside target, followed by 108 on the H1 and then the 38.2% Fib retracement noted on the H4 at 107.66.
As a result, a recovery from the current H1 demand at 108.84/109.23 is unlikely to generate much in terms of upside today. A H1 close beneath the zone, therefore, may unlock the door for bearish scenarios to 108.31.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Since kicking off 2017, USD/JPY has been busy carving out a descending triangle pattern (118.66/104.62). February had price elbow a touch outside the upper boundary of the aforementioned descending triangle to 112.22, though retreated lower and produced a shooting star pattern into the month’s end.
March breached the lower edge of the descending triangle, yet has recovered in strong fashion, leaving nearby demand at 96.41/100.81 unchallenged. Note current action is seen fading the descending triangle’s upper boundary.
Daily timeframe:
Since the beginning of the week, candlestick analysis emphasised an indecisive tone ahead of supply at 112.64/112.10. Thursday, however, put in a dominant bearish candle, filling a large portion of its body, and is now poised to grip the 200-day SMA value, currently circulating around the 108.31 region.
Beyond the noted SMA, price is tipped to soften towards demand posted at 105.70/106.66.
H4 timeframe:
Technicians will note the ascending triangle formation (black lines 111.47/109.33) had price break to the downside in early trade Thursday and also dethroned channel support (101.18). Active buying is unlikely to emerge on this timeframe until crossing paths with the 38.2% Fib retracement at 107.66.
H1 timeframe:
Starved of support, USD weakness across the board prompted a feisty decline Thursday, upsetting both 111 and 110 levels, with price currently trading within striking distance of 109. Demand, as you can see, is also present at 108.84/109.23, reinforcing the said round number. A violation of the current demand lays the foundation for a possible move to 108.
Structures of Interest:
Monthly, daily and H4 timeframes underscore the possibility of further losses, with the 200-day SMA at 108.31 set as an initial downside target, followed by 108 on the H1 and then the 38.2% Fib retracement noted on the H4 at 107.66.
As a result, a recovery from the current H1 demand at 108.84/109.23 is unlikely to generate much in terms of upside today. A H1 close beneath the zone, therefore, may unlock the door for bearish scenarios to 108.31.