$ vs ¥
The market has been moving sideways since a bullish impulse in wave ((A)) finished.
It seems like a wave ((B)) is taking the form of a triangle .
So wave C of (D) is finished. If correct, the market should continue to decrease towards the pattern’s lower side to a wave (E) , in the coming months.
Traders confidence has fallen since the Federal Reserve surprised markets last week by being unexpectedly hawkish.
And that has boosted the US Dollar all round and, while it is now off its highs, it continues to look firm against the Japanese Yen.
The price is in a parallel channel and has reach the peak and found resistance.
There is a warning signal though from...
USDJPY - Monthly chart - All trading is a game of supply and demand. When demand exceeds supply, price will rise and when supply exceeds demand, price will fall. Usdjpy is in a monthly downtrend but currently it is trading in a monthly demand zone so shorts are not allowed, we are expecting a pullback upto 107-108 on this pair to take shorts from 108-109 down to...
Dollar-Yen is on a strong resistance and it has bounced off the resistance, its good indicator that the market is going to sell from the current level, you preferably you may wait to retest again the respected level of structure and watch a price action there if the market again respects that level its great chance to shorten this pair next...
Usdjpy - Daily - This pair has been very hard to forecast due to the bullish yet range bounce price movement recently but given the stength in jpy this week.. with a break of a daily ascending trend line and a head and shoulder pattern broken on H4 chart.. I can see price heading down towards 107.. lets how this plays out..
Looking at the bigger picture on USDJPY, I am expecting to see a rally over the coming months which should see price reach 118 comfortably and possibly as high as 120. From that point I will be waiting for a reversal to confirm where there will be a significant move to the downside being the second impulse after the correction is complete.
USDJPY has a number of trends going against it to force price action downwards. Technicals and fundamentals are not on the dollar's side against the yen. Traders can see a number of oscillators and MAs suggesting USDJPY is overbought and due for a reversal. Moreover and probably more impactful are the fundamentals of the global economy which suggest major growth...