Thursday, November 10, 2016
A Day after the Elections a Powerful Daily Bullish Bar Is a Signal for the Continuation of the USD/JPY Bullish Trend
After the results of the US election came out and Donald Trump became the 45th President of the USA the markets reacted with a dollar crash, which was sharp and powerful, but occurred over a relatively short period of time.
The market, however, quickly overcame that panicked reaction and the currencies continued on their expected way.
The USD/JPY reaction was especially impressive – the pair managed to drop with 420 pips for about eight hours and then rebounded for about the same amount of time. In the end it formed a powerful bullish pinbar on the daily time frame that closed above the long-term trend channel (in blue) and formed an unquestionable breakout. After registering a low at 101.189 yesterday the pair closed at 105.648, and today, after an insignificant retracement, USD/JPY climbed above 106.50.
In my opinion, this confirms my expectation that the USD/JPY trend has reversed and from now on every retracement can be used to open new long positions.