USD:JPY: long-termed rising trend and mid-termed declining movement.
Decline in price to 61.8% Fibo of the last declining impulse.
Reversing Head and Shoulder formation, reverse of the mid-termed short movement - activated.
Possible gap on the breakaway, closing of the gap and a price action signal for rising - hammer on test of the support on 109.54
The last short movement, which for now is a correction is still in play, lower highs and lower lows.
Price reached diagonal support levels and ex-resistance now support, which create a zone of support 110.34 - 110.57. Breakaway of these levels may open the way for a test on 112.00 levels.
It is highly possible to see a test on 110.57
Indicators are in a positive formation CCI(50) is above 100, DeM is crossing 0.7.
Alternative scenario:if a price action occurs under the 110.57 levels, we can look for a new short positions, as the mid-termed declining movement is still in play until a breakaway of 110.57
Stefan D. Angelov - Head of Stocks Trading
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