In yesterday's analysis, I expect UJ to have an upwards breakout of the exhaustion pattern (flag) that has been formed since 11th Jan with 104.27 resistance level as the initial target, which was exactly what the market performed. A breakdown of yesterday's forecast, UJ has been in a long-term downtrend post-Covid, which lead to the majority still dwelled in the bearish bias in UJ. On the 6th Jan, I noticed a probe at 103.000 support zone as price dropped to 102.640 level, immediately bounced back above 103.000 which indicated a potential momentum shift (bearish → bullish). I then noticed a re-test at 103.000 support zone followed by an impulse towards 104.27 level. When you noticed a higher low forming in a downtrend, that's already a first warning that you should be cautious of your short positions. During 11th - 25th Jan price formed an exhaustion pattern (flag), followed by a build up against the top band of the flag pattern indicate potential upwards breakout. In today's trading session, I will be focusing on short-term buying opportunities after some pullback, with 104.70 & 105.60 resistance zones as targets.
However, do not forget the overall trend on the higher timeframe remains bearish.
Trade safe.
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However, do not forget the overall trend on the higher timeframe remains bearish.
Trade safe.
Do follow my profile for daily fx forecast & educational content.
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