USD/JPY has
been rallying smoothly with almost no serious correction and reached the
resistance trend line of the channel. Within the channel it formed a corrective
flag that reached the trend lines four times that I can call an A-B-C
correction without a doubt. The last above-mentioned move to the upside from
108.128 (from 17th April
2017) could be interpreted as an impulse to the upside.
That could
mean that the correction is over at this stage and we could expect a breakout
above the resistance trend line.
If that
assessment is valid there could be a rally toward 119.00 at least, i.e. another 600 pips to the
upside, where is the limit of the flag.
In the
alternate scenario there will be a new move to the downside to the support
trend line, but I think that is not very likely.
Good point, will keep it mind!
ReplyDeleteIt could break higher.
ReplyDeleteGood tip! I'll keep it in mind.
ReplyDeleteIt's retracing for now.
ReplyDeleteGood take on markets!
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteGood post!
ReplyDelete