I rushed through, a little bit, on previous analysis on the USDJPY. I will slow down on this one.
Either we're going to get a quiet November and the pair will form something of a Shooting Star or maybe a Doji, or the candle is going to be a long one (we'll have to wait to find out which way).
So, the first scenario. We can see that on the Monthly chart this building up this beautiful symmetrical triangle, which ready to be broken. If this month will be a quiet one and the month will ed up forming something similar to a Doji or Shooting Star, then I've got this feeling that it might turn around and go down for a little bit to test the bottom trend. Considering the strong DXY and Mr Abe.
Now the other scenario is that, because it is testing this upper line of the triangle, we might get a good pop, that could lead to higher levels. But for that to happen we would need a good pop.
The level to watch on the upside is around 118.665, that was taken in the end of 2016.
Another point that leads towards the BUY side is the Flag formation... kinda... if we can call it that. So this also could indicate, that this pair wants to head higher.
Another point is that if we look at the Bollinger Bands, then we can see that the pair is not far from the upper band, which, eventually, it will have to be met. And what other time to do that than "SOON".
But in all this outlook, I think it is important to stay cautious, and analyse this pair day by day, but keeping in mind these scenarios.
My personal view? I would like to see a good strong sell off and then a sharp reversal to the upside. But that's over a very Long term period. The ideal move for me would be a drop to the mid line of the Bollinger Band and then a move back up to break the triangle. But the market doesn't care what I want.
Keep an eye on the price action!
Either we're going to get a quiet November and the pair will form something of a Shooting Star or maybe a Doji, or the candle is going to be a long one (we'll have to wait to find out which way).
So, the first scenario. We can see that on the Monthly chart this building up this beautiful symmetrical triangle, which ready to be broken. If this month will be a quiet one and the month will ed up forming something similar to a Doji or Shooting Star, then I've got this feeling that it might turn around and go down for a little bit to test the bottom trend. Considering the strong DXY and Mr Abe.
Now the other scenario is that, because it is testing this upper line of the triangle, we might get a good pop, that could lead to higher levels. But for that to happen we would need a good pop.
The level to watch on the upside is around 118.665, that was taken in the end of 2016.
Another point that leads towards the BUY side is the Flag formation... kinda... if we can call it that. So this also could indicate, that this pair wants to head higher.
Another point is that if we look at the Bollinger Bands, then we can see that the pair is not far from the upper band, which, eventually, it will have to be met. And what other time to do that than "SOON".
But in all this outlook, I think it is important to stay cautious, and analyse this pair day by day, but keeping in mind these scenarios.
My personal view? I would like to see a good strong sell off and then a sharp reversal to the upside. But that's over a very Long term period. The ideal move for me would be a drop to the mid line of the Bollinger Band and then a move back up to break the triangle. But the market doesn't care what I want.
Keep an eye on the price action!
