USD/JPY: Our Expectations: The upward movement is continuing, possible long after correction of 20 pips with SL at 112.71
Alternative scenario: If the price breaks below 112.71, the bullish formation will be dismissed and we must look for a sell opportunity.
Comments: Long-term upward movement, possible change of the middle-term tendency to long, after the higher top.
Price action: Engulfing candle after the break of the diagonal resistance - potential for increase
CCI(50) - goes over 100 - strong positive sentiment
20 EMA goes over 50 EMA - long
Possible Flag Formation - break of the upper shoulder
The price is close to the horizontal resistance, where we can see short-term correction of 20-30 pips, which will give us better entry levels.
Stefan D.Angelov - Head of Stocks Trading
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