USDJPY - SHORT - NEW 1-5 IMPULSE WAVE + WEDGE PATTERN
BIAS SHORT:
IN TERMS OF TECHNICALS NOW THAT ABC PATTERN IS COMPLETED, IT HAS CREATED A WEDGE PATTERN WHICH IS ABOUT TO BREAK. I BELIEVE THIS WILL CREATE ANOTHER IMPULSIVE WAVE AND THE TARGET IS A COMBINATION OF FIBONACCI CLUSTER + MONTHLY SUPPORT ZONE.
WE SHOULD BE EXPECTING AT LEAST BETWEEN 300-400 PIPS ON THIS TRADE AND CAN EXPECT TO RIDE IT TO THE BOTTOM.
MOREOVER, IF WE LOOK AT THIS FUNDAMENTALLY, THE FED HAS DECIDED TO CUT INTEREST RATES THIS JULY WE SHOULD BE EXPECTING A USD SELL-OFF FOR A WHILE, AND TYPICALLY IN THESE SITUATIONS, USDJPY IS THE STRONGEST PAIR TO TRADE ALONGSIDE EURUSD, USDCHF AND GOLD.
IN TERMS OF TECHNICALS NOW THAT ABC PATTERN IS COMPLETED, IT HAS CREATED A WEDGE PATTERN WHICH IS ABOUT TO BREAK. I BELIEVE THIS WILL CREATE ANOTHER IMPULSIVE WAVE AND THE TARGET IS A COMBINATION OF FIBONACCI CLUSTER + MONTHLY SUPPORT ZONE.
WE SHOULD BE EXPECTING AT LEAST BETWEEN 300-400 PIPS ON THIS TRADE AND CAN EXPECT TO RIDE IT TO THE BOTTOM.
MOREOVER, IF WE LOOK AT THIS FUNDAMENTALLY, THE FED HAS DECIDED TO CUT INTEREST RATES THIS JULY WE SHOULD BE EXPECTING A USD SELL-OFF FOR A WHILE, AND TYPICALLY IN THESE SITUATIONS, USDJPY IS THE STRONGEST PAIR TO TRADE ALONGSIDE EURUSD, USDCHF AND GOLD.
Comment:
As we know, Nikkei 225 negative correlates with USDJPY really well. and that itself is also supporting my above analysis
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