USDJPY - Scalping pullback to descending parallel channel?
After the positive US news yesterday USDJPY broke out of the descending parallel channel it had been in for the past 12 weeks.
I believe DXY is due either a retracement from its current impulse (back to around 107.4 (0.5 fib), or it will indeed completely reverse up based on fundamentals. If this is the case then UJ's breakout will likely become a big move to the upside.
In the very short-term though, I believe UJ will retest the channel (around 250 pips).
It's over-sold and channel breaks normally respond with a retest before continuing the move away, so I'm looking for shorts around 131.500.
I believe DXY is due either a retracement from its current impulse (back to around 107.4 (0.5 fib), or it will indeed completely reverse up based on fundamentals. If this is the case then UJ's breakout will likely become a big move to the upside.
In the very short-term though, I believe UJ will retest the channel (around 250 pips).
It's over-sold and channel breaks normally respond with a retest before continuing the move away, so I'm looking for shorts around 131.500.