USD/JPY made a second, for now unsuccessful, attempt to break out below the strong support in the zone at 110.30 – 111.00 and began a correction yet again after rebounding from it.
That is very visible on the weekly, daily and H4 time frames.
I think the first target of the move to the downside is the zone around 110.80 – 111.20.
In case this zone proves too hard to break out above for another rally to follow, we could witness a new test of the local low around 110.30 – 111.00. In case USD/JPY does break out below it – after its third attempt, we could see a drop toward 108.50 or even lower than that.
Still, we should keep in mind that all movements to the upside of this pair for the past six-seven months until now have been strong and in the form of an impulse, while all moves to the downside have been corrective. That makes me think that the long-term move to the upside is not over yet.
It's climbed back to 111.30.
ReplyDeleteGood review!
ReplyDeleteGood insight.
ReplyDeleteVery helpful analysis, thank you for sharing!
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteGood post.
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