Last week the USDJPY pair was characterized by a lack of volatility of the price, so for the most part of the week the pair was trading in a range with no clear direction. On the last part of the past week, the pair somehow managed to give more of a down move, which we expect to be the theme for this week too. We expect a move down, at least to test the M_PP at 110.11 area, where then we should look carefully how the price will react on this area. It is possible that this area will hold as support due to lack of volatility on the market, so based on our current short positioning on the market, this area could serve as profit taking target.
Comment:
The market moved completely on the other side of our predictions, with the bulls having total control of the market. Now the price is near the structure at 111.284 and also approaching the M_PP levels so we may have bear orders at these levels that can bring the price down.
Comment:
This week the USDJPY bulls were very strong and confident on their actions as they drove the price up really fast and broke two very important levels of M_R1 and M_R2 and now the pair is trading above these levels. For end of the week analysis we may look for buy opportunities on a retest of M_R2.