The USD/JPY situation appears clearer and clearer.
The pair is moving within a trend channel and after the strong daily hammer bar that formed right under the resistance marked by the Bollinger Bands indicator we could expect that the pair will renew its move to the downside toward the support trend line of the channel, its target being around 108.50.
That is how the pair would reach the trend lines of the channel for a fourth time, which is the most logical thing to expect.
What will happen after that though?
The first most probable scenario, in my opinion, is a move to the upside toward the resistance trend line after the pair reaches the trend lines for fourth time. In case there is a breakout, the upward trend could be renewed with targets around 122 – 123.
In the second scenario there will be a breakout to the downside and a continuation of the bearish trend.
It is quite bearish indeed.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteGood tip! I'll keep it in mind.
ReplyDeleteCongratulations for your accurate predictions.
ReplyDeleteExcellent assessment!
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDeleteUsd/Jpy has skyrocketed.
ReplyDelete