USD/JPY at Major resistance level - one to watch
USD/JPY has recently closed on a major resistance level, indicating that there will be a break or bounce around this area.
The most recent daily candle is in the form of a 'shooting star' which indicates a bear reversal from the recent bullish trend from the 6th-9th January. This candlestick pattern along with the initial bounce at the resistance area indicates that there will be a bearish reversal in the near future. However I will be watching the candlesticks over the next few days to see a confirmation move, break or bounce.
This resistance area also sits on the 50% Fibonacci retracement level between the swing high of 1st October 2018 and the swing low of 31st December 2018 indicating that this is a major resistence zone, a bounce here will be a hard bear - equally a break through at this level will indicate a strong bull.
Fundamental analysis: Asias stock prices have recently lowered with Japan's benchmark Nikkei 225 stock index fell by 1.3%, and Hang Seng in Hong Kong was down 0.8%, and China's Shanghai Composite was 0.9% lower.
Equally though JPY has been strong through the start of the year even with world anxieties . Apple blaming China for slowing of sales which has prompted a drive of safe haven flows to JPY. Along with this JPY is at a 10 year high against AUD.
With strong fundamental analysis on each side at this point of major resistance it is clear that a break or bounce will be a big move.
Follow, like, share and keep up to date for following analysis. These are just the ideas of a salmon, nothing more, nothing less. Do not take these ideas for gospel.
The most recent daily candle is in the form of a 'shooting star' which indicates a bear reversal from the recent bullish trend from the 6th-9th January. This candlestick pattern along with the initial bounce at the resistance area indicates that there will be a bearish reversal in the near future. However I will be watching the candlesticks over the next few days to see a confirmation move, break or bounce.
This resistance area also sits on the 50% Fibonacci retracement level between the swing high of 1st October 2018 and the swing low of 31st December 2018 indicating that this is a major resistence zone, a bounce here will be a hard bear - equally a break through at this level will indicate a strong bull.
Fundamental analysis: Asias stock prices have recently lowered with Japan's benchmark Nikkei 225 stock index fell by 1.3%, and Hang Seng in Hong Kong was down 0.8%, and China's Shanghai Composite was 0.9% lower.
Equally though JPY has been strong through the start of the year even with world anxieties . Apple blaming China for slowing of sales which has prompted a drive of safe haven flows to JPY. Along with this JPY is at a 10 year high against AUD.
With strong fundamental analysis on each side at this point of major resistance it is clear that a break or bounce will be a big move.
Follow, like, share and keep up to date for following analysis. These are just the ideas of a salmon, nothing more, nothing less. Do not take these ideas for gospel.