USD/JPY
failed to break out above 110.90 – 111.00 and the FOMC Meeting Minutes announcement
yesterday served as a catalyst of an impressive move to the downside to the
support at 109.50,
which is a little above the 61.8% Fibo of the rally from 108.729 to 110.947.
At same
time one can notice that the pair is forming a head and shoulders pattern on
the H4 time frame which is not finished yet.
At the
support on the H4 time frame there is also a bullish bar, which is a possible
signal for a rally.
The head
and shoulders pattern will be confirmed only if the pair does break out above
111.00. I think if there is such a confirmation and it reaches its limit we
could expect a rally to 113.00.
In the
alternate scenario there will be a drop and a test of the support at at 109.00
- 108.70.
That's good to know, thank you.
ReplyDeleteGood analysis.
ReplyDeleteSeems like an inverted head and shoulders in the making, well spotted!
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteVery well spottted!
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteGreat post! I fully agree with your view.
ReplyDeleteGood analysis. Very good explanations.
ReplyDelete