Wednesday, October 18, 2017

USD/JPY May Be Resuming The Upward Trend

USD/JPY completely proved wrong my expectation for a drop, forming an inverted head and shoulders pattern on the H1 time frame, or, it could be said that there are clear support (considering the double bottom at 111.647 – 111.657) and resistance zones (112.299), which formed the horizontal channel the pair broke out above. After the second breakout today it became clear that the pair would reach the limit of the channel, which was 65 pips, and it has already done so.

On the D1 time frame, however, the strong resistance zone is around 113.10 – 113.30 and there we could expect a correction to the downside, before the pair tests the next resistance around 114.50 that can be seen on the W1 time frame.

In case it breaks out above 114.50, we could expect an acceleration of the upward movement to 119.00.