Yesterday's short-term technical outlook:
As I mentioned in yesterday's technical outlook I am not expecting to see new highs on USDJPY this week. The 118.66 institutional resistance level has kept the upside in check for 6 consecutive trading days. This suggests that this trend is very exhausted and due for a corrective pullback.
As you can clearly see we are approaching the apex of this wedge pattern and a squeeze breakout is imminent. A breakout to the upside must push above and sustain above the 118.66 figure to see any further upside. With that being unlikely we are expecting any sharp up move into the latter figure to be quickly rejected to knock price back into this range.
With the overall trend, still being to the upside buying dips will be preferred, so any sharp moves lower will likely be bought up very quickly.
First key support below is at 116.5.
I hope this gives you traders clarity on this pair. Enjoy!
As I mentioned in yesterday's technical outlook I am not expecting to see new highs on USDJPY this week. The 118.66 institutional resistance level has kept the upside in check for 6 consecutive trading days. This suggests that this trend is very exhausted and due for a corrective pullback.
As you can clearly see we are approaching the apex of this wedge pattern and a squeeze breakout is imminent. A breakout to the upside must push above and sustain above the 118.66 figure to see any further upside. With that being unlikely we are expecting any sharp up move into the latter figure to be quickly rejected to knock price back into this range.
With the overall trend, still being to the upside buying dips will be preferred, so any sharp moves lower will likely be bought up very quickly.
First key support below is at 116.5.
I hope this gives you traders clarity on this pair. Enjoy!
