Saturday, April 28, 2018

I Expect A Bearish USD/JPY Correction Before A Test Of The Resistance at 110.00 – 110.50

I expect a renewal of the downward movement for the USD/JPY pair too. 

The D1 bar for last Friday closed as a hanging man at the high of the upward movement under the W1 resistance at 109.017.

I expect that next week the depreciation will continue to the zone around 108.30 – 107.80 where the pair will meet a strong support on the W1 time frame.

On the monthly time, however, the upward trend is still valid. Until the end of the month there is only one more daily trading session left, the monthly bar will close on Monday, but the strong resistance is all way at 110.00 – 110.50.

That is why I expect the depreciation at the beginning of next week to be corrective in nature, in preparation for the test of the monthly resistance.