USD/JPY forex technical analysis D1 | Our expectations:
Downward trend, lower highs and deeper bottoms. The current correction gives good opportunity for short positions with a close SL and a good risk/reward ratio.
1,2,3 formation is likely to keep the pair moving south, the pair reached the resistance of the trend channel and is suitable for entry.
Price Action: Pin bar on resistance levels
Indicators:
Price below 50 and 200SMA. MAs in a bear formation.
Test of 23.6% Fibonacci, the price rebound sharply down.
DeMarker - turns above 0.3 this gives a contradictory signal, but the indicator follows the price, so in that case it can be ignored.
Fundamental: The US Federal Reserve will be forced to cut interest rates in an attempt to boost slowing economic growth. Markets are already pricing three interest rate cuts before the end of the year, starting at the next July meeting, with the boldest projections reaching five cuts by the mid. of 2020.
SL: 109 (Deliberately lengthened to prevent stopping hunting).
Alternative Scenario: Breaking the price above the resistance zone will break the negative scenario for the pair.
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