Friday, November 03, 2017

USD/JPY Is Consolidating Below 114.50

USD/JPY continues developing within the consolidation below the resistance 114.50 – it has been eleven days since it began doing so.

This is the third attempt to break out above said resistance from 10th May 2017 up until now.

We all know the rule – currency instruments usually make three attempts to break out above or below a level (which why there is a “triple top” formation in technical analysis) and if this attempt turns out unsuccessful the pair will most probably start dropping.

However, if it does manage to break out above the resistance I think the next resistance zone will be around 115.00+ and a break out above that zone will lead to another rally toward  119.00 – something I have been expecting to happen for the past six months.