Friday, September 01, 2017

USD/JPY May Rally Again If It Breaks Out Above The Range Channel

USD/JPY once again returned within the range despite the lower low at 108.264 and after a rally of about 240 pips it formed a trend channel with a slight breakout above the resistance trend line.

On the H4 time frame there is a pin bar that is a signal for a rally, especially if the pair breaks out above the resistance trend line again and remains above it – then we could expect an acceleration of the move to the upside and a rally to 113.00, which would certainly mean that the nine month-long correction is over.

The weekly bar, which will soon close, also supports this scenario as it also signals for an impending rally.

In the alternate scenario there will be a drop and a test of the support trend line around or a little below 108.00.