The US dollar appears to have regained bullish traction as we witnessed a bounce back and forth before the price finally broke out of the Key level @ Y130.800 to reveal buyers strength at this juncture in the market.
As we all have noticed that the Yen is being sold off against almost every major pair in recent time, and following Higher US bond yields and hawkish Fed expectations the scenario painted here is not a different one at the moment. The present market structure could probably explain what is going on with the Japanese yen as I look forward to a buying opportunity on this one in the coming week.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline
Observation: I. Since mid-September 2021, the USD recorded a 5.05% growth over the Yen to set the tone for a Bullish momentum in the long term.
ii. Despite citing a reversal pattern after hitting a peak at Y114.700 in mid-October 2021; Sellers have been finding it difficult to push the price below Y113.400.
iii. Bearish Trendline: A visual representation of resistance line drawn over pivot highs reveals the prevailing direction of price and speed of price in the last couple of weeks.
iv. However, the Y113.400 Level has kept price "supported" in the last couple of weeks to suggest a decline in Bearish momentum.
v. In this regard, it is obvious to state here that buyers have continued to pick prices up from Y113.400 hereby making this zone a significant demand level in the meantime.
vi. Following a Breakout of Key level @ Y113.800 during last week trading session, I shall anticipate a Breakout of Bearish Trendline for signal confirming a rally in the coming week(s).
vii. Even as above Key level remain a yardstick for taking a long position, I have identified a "New Demand level" on the chart for trading opportunities should the price plunge... Trade consciously!😊
NB: Considering the reversal pattern identified after hitting Y114.700, It is worthy to state here that a significant Breakdown of Y113.400 should render the narrative invalid hereby welcoming an opportunity to short the pair temporarily (correction phase) at a retest of the Demand zone broken.
Trading plan: BUY confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:4
Potential Duration: 4 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
As we all have noticed that the Yen is being sold off against almost every major pair in recent time, and following Higher US bond yields and hawkish Fed expectations the scenario painted here is not a different one at the moment. The present market structure could probably explain what is going on with the Japanese yen as I look forward to a buying opportunity on this one in the coming week.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline
Observation: I. Since mid-September 2021, the USD recorded a 5.05% growth over the Yen to set the tone for a Bullish momentum in the long term.
ii. Despite citing a reversal pattern after hitting a peak at Y114.700 in mid-October 2021; Sellers have been finding it difficult to push the price below Y113.400.
iii. Bearish Trendline: A visual representation of resistance line drawn over pivot highs reveals the prevailing direction of price and speed of price in the last couple of weeks.
iv. However, the Y113.400 Level has kept price "supported" in the last couple of weeks to suggest a decline in Bearish momentum.
v. In this regard, it is obvious to state here that buyers have continued to pick prices up from Y113.400 hereby making this zone a significant demand level in the meantime.
vi. Following a Breakout of Key level @ Y113.800 during last week trading session, I shall anticipate a Breakout of Bearish Trendline for signal confirming a rally in the coming week(s).
vii. Even as above Key level remain a yardstick for taking a long position, I have identified a "New Demand level" on the chart for trading opportunities should the price plunge... Trade consciously!😊
NB: Considering the reversal pattern identified after hitting Y114.700, It is worthy to state here that a significant Breakdown of Y113.400 should render the narrative invalid hereby welcoming an opportunity to short the pair temporarily (correction phase) at a retest of the Demand zone broken.
Trading plan: BUY confirmation with a minimum potential profit of 100 pips.
Risk/Reward: 1:4
Potential Duration: 4 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously