USDJPY Weekly Technical Outlook
The USDJPY market is generally sideways. On the monthly time frame, market operation is in a symmetrical triangle (blue). In July, it printed a relatively bearish candlestick which tested the triangle support trendline before retracing northward to the 105.850 area. The 108.000 area is technically the prevailing horizontal resistance on the monthly time frame.
Last week, USDJPY market operation printed a long-tailed hammer-like candlestick on the weekly time frame. Looking left, it seems the candlestick print was an attempt to complete an ‘M’ pattern that began in early March. Very much likely, we can expect a further bearish reaction in the early part of this week.
USDJPY price action on the daily time frame is now at the 105.850 area, an area which has served as a horizontal technical reaction area (i.e. S/R) several times in the recent past. It is also located in the 50/61.8 Fib zone of the downward swing from the 107.230 area on July 23. Technically, the area is susceptible to a bearish turnaround.
I may be wrong. Trade safe and prosper.
KP
The USDJPY market is generally sideways. On the monthly time frame, market operation is in a symmetrical triangle (blue). In July, it printed a relatively bearish candlestick which tested the triangle support trendline before retracing northward to the 105.850 area. The 108.000 area is technically the prevailing horizontal resistance on the monthly time frame.
Last week, USDJPY market operation printed a long-tailed hammer-like candlestick on the weekly time frame. Looking left, it seems the candlestick print was an attempt to complete an ‘M’ pattern that began in early March. Very much likely, we can expect a further bearish reaction in the early part of this week.
USDJPY price action on the daily time frame is now at the 105.850 area, an area which has served as a horizontal technical reaction area (i.e. S/R) several times in the recent past. It is also located in the 50/61.8 Fib zone of the downward swing from the 107.230 area on July 23. Technically, the area is susceptible to a bearish turnaround.
I may be wrong. Trade safe and prosper.
KP
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