As some released news from the U.S. have been announced not as expected for a smoothing corporate tax cuts, hence the greenback lost its strength to push up USD/JPY to the 115.xx handle, and it is now struggling around its supply zone from 113.1xx-113.9xx. According to our technical point of view, that pair is currently trading in its corrective wave and a B leg should yet be being formed. There are two scenarios for that corrective trade that
1) The B leg will be ended at the 113.8xx handle and forms its the right shoulder pattern there. With this scenario, we can give USD/JPY a short/sell limit
2) Other scenario is that an extension for the B leg can be occurred and it quickly leads the price action to a next high destination. That is a case that there are further new news to support the greenback like rate hike for 0.25 basis
point in December by Fed and the tax cuts plan by Trump's Administration be with further positive signals.
Take your look at the depicted chart below for further reference.
Trade well!
Makkaba
1) The B leg will be ended at the 113.8xx handle and forms its the right shoulder pattern there. With this scenario, we can give USD/JPY a short/sell limit
2) Other scenario is that an extension for the B leg can be occurred and it quickly leads the price action to a next high destination. That is a case that there are further new news to support the greenback like rate hike for 0.25 basis
point in December by Fed and the tax cuts plan by Trump's Administration be with further positive signals.
Take your look at the depicted chart below for further reference.
Trade well!
Makkaba