USD/JPY
formed a perfect flag with the pair reaching the trend lines of support and
resistance four times and it even managed to break out above it.
The height
of the flag at its base is 108 pips, which means that if it reaches its limit
the pair should rise to 113.40.
If we
examine the pair on the weekly time frame, we will notice that that is exactly
the zone of the weekly resistance. I think it is logical to expect that the pair
will aim for it and reach it.
If it
manages to break out above the resistance after the inevitable correction, I
think we can expect a continuation of the long term rally to 118.00 or even
higher.
Of course,
the market could have a different idea and form yet another drop.
Obviously,
we need to be exceedingly careful when the pair is in that zone and we should
observe what sort of figures and patterns it will draw.
I fully agree with your analysis.
ReplyDeleteExcellent observation!
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDeleteVery helpful.
ReplyDeleteIt found some resistance at 113.20.
ReplyDeleteGood post!
ReplyDeleteWell spotted! Thanks for sharing it.
ReplyDeleteIndeed.
ReplyDelete