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- USD/JPY – The way to 110.00 looks clean
USD/JPY - The way to 110.00 looks clean
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Loading...FX forecast / USD/JPY - Weekly/Daily / Our expectations:
The long-term trend remains short, but the upward momentum signals a larger upward correction. Let's start with the big picture W1 and look at the opportunities for a trade in the next few days.
Technical look - W1
After stock market auctions, the JPY took the lead and appreciated significantly against most currencies, including USD. During sells, the USD/JPY tests the lower diagonal of the downtrend channel, then forms a Price Action signal for the Long - Bullish engulfing bar. But then Long-a was still risky, as the price was under a basic horizon. Now things are different, as today's upward momentum breaks through that diagonal. In support of Long-a is DeMarker (14), pointing upwards in an over-sales area. Let's get down to the living room to make the entrance better.
Technical look - D1
Day-to-day things look even more promising, after activating the H & S inverted formation, breaking the long-term horizon and ending short-term Short Trend coupled with a breakthrough and a 23.6% Fibonacci correction. The input options are two, now and after slightly adjusting the price near the pierced horizontal. Entry from the current levels is at risk and gives us a profit risk ratio of 1: 1, while the more conservative that is good to do to the support zone will achieve a minimum of 1: 3.
SL: 107.30
Alternative Scenario: If the price goes back below the pierced horizon and stays there for several day bars, the positive scenario will be spoiled and more likely to see a decrease in price.
Trader Petar Milanov Read more:
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