USD/JPY could not break out above the resistance around 113.50 – 113.70 and after forming three D1 bars (a marubozu and two doji bars) below the above-mentioned resistance it started falling:
At the
moment the pair has reached a strong support at 112.50 and at that level it is forming
a barbed wire pattern. That formation is ambiguous and as a rule it is not a
good idea to trade it without more clarity about how the instrument will
develop. More clarity can be expected once the American and Asian sessions open
and their traders join the market, as usually they are more interested in this
currency pair.
In case
there is a breakout below the support we could expect a test of the next
support around 111.50 – 111.30.
In the
alternate scenario there will be a rally to 113.20 – 113.30.
Very well spotted, will keep it in mind!
ReplyDeleteThank you for the analysis.
ReplyDeleteWell spotted! I'll keep it in mind.
ReplyDeleteHelpful article.
ReplyDeleteVery useful information! Thanks.
ReplyDeleteEven though the pair selling interest decrease, but still remain in the negative territory.
ReplyDeleteGood posts, very helpful for all traders.
ReplyDeleteGood post!
ReplyDelete