USDJPY is currently testing 109.5 structure support level.
taking into account the formation of a double bottom pattern
+ clear RSI divergence the market has the potential to pull back up!
our plan is:
if bulls break 110.0 resistance level.
most likely the market will go higher and reach at least 110.5 level.
so we wait...
market broke 111.8 key structure support level.
now it is retesting a broken level.
for us, it is a perfect opportunity to sell the market.
the first significant support is 110.0 level
109.5 is the second support.
USDJPY is about ready for a fresh new bullish trend after a hawkish FOMC.
The price saw itself surging as it rebounded off from a key demand zone supported by a 4-month rising trendline and after the completion of an ABCD pattern.
The price has now closed above the falling trendline and stands above the previous high of 111.55, thus affirming a new bullish trend...
USDJPY came down strongly after a fake breakout of 112 since last week.
We can clearly see a falling channel is forming since the first wave of bearish movement has ended and as the second wave is still in progress.
In an ABCD pattern, it is important to watch for the break of point C before we can conclude that it is able to form D and that's what's happening...
As a risk off safe haven asset, the Japanese yen tends to strengthen during times of volatility. A number of signals suggest this could be a turbulent week for markets. If that is the case, USDJPY short.
We've seen a huge risk-off shift in sentiment over the past few trading days stemming back from last Friday that saw many safe haven assets like the Japanese yen strengthen. There's many reasons why this is including ongoing concerns of a global growth slowdown, signals of recession such as the yield curve inversion, and thematic concerns lurking in the background...