Friday, December 01, 2017

USD/JPY May Depreciate Today

Today the USD/JPY pair formed two excellent signals that there will be a move to the downside before the beginning of the European session. It began once the European investment companies banks and traders entered the market.

Oh the H4 time frame there is a hanged man bar at the high of the upward movement, which is an almost certain signal for a drop.

On the M30 time frame there is an RSI divergence between three highs, which, if It reaches its limit, should lead the pair to 112.00.

On the M5 time frame there was a small flag with limit of 23 pips, which the pair reached very quickly and after a short correction it kept depreciating.

Drawing the diagonal trend line of the upward movement we can see that the target is around 112.00 where there is a strong support visible on the H4 time frame.