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!
Such erratic movement today after all the US reports came in early morning. Movements seemed exacerbated due to lower holiday volume, I suspect.
Thanks for sharing this great commentary.
UnknownUnicorn261897
⋅
@Rivet, Yup low liquidity with most institutional traders away from their desks already. Makes for difficult trading, markets are easily manipulated.
RrrussT1
⋅
Thanks for sharing your view! Glad to read, because MOST thinking and even MOST BANKS(BS) public opinion (Shared) Bullish this pair.
BOJ has long been supporting this pair. They have permission, from Grandma Yellen, to "stabilize" their currency. Moreover they have reason to DEVALUE the YEN. "Currency Wars." Japan has reason to do this. BUT.. it is doing damage to MANY other Countries Currencies. Including China. China is having to spend TONS of money to 'offset' Japan's "Aggressive Devalue." US Dollar Strength is causing an aggressive DEVALUE of China's Yuan and China is spending TRILLIONS of Yuan to try to stabilize their Yuan valued to ==> LESS THAN 7.00 in the USD/CNY pair. Here is a headline: "USD/CNY: China's coping hitting limits" - Nomura China is TRYING to cope, and "behave" on the World Scene, but, can it last??
There will come a point where China will no longer "Put up with Japan's Aggressive Yen Devaluation." What might that look like??
Dollar weakness WILL come. Yuan Strength WILL come. Manipulated Markets I believe are "Here-to-Stay."
US Dollar Super-Strength is an "ILLUSION" conjured-up by "YUUGE Manipulative Market Makers" in our Forex market. Their "Plan" is what?? This is why these markets are sooo hard-to-read. The US Dollar Crash that HAS-to-Come will be "something-to-watch."
CAUTION: Be very careful of "Holding Positions" when YOU are not able to watch them. The Reversal could very well be V V (Very Violent)!!!
Thanks for sharing this great commentary.