Key Speaking Factors:USD/JPY aiming to interrupt above 110.50 earlier than reversal In search of a break beneath 108.50 if the sample consolidates
Key Speaking Factors:
- USD/JPY aiming to interrupt above 110.50 earlier than reversal
- In search of a break beneath 108.50 if the sample consolidates
USD/JPY is consolidating above 110.zero this morning regardless of current weak spot within the US Greenback because the Japanese Yen is struggling to search out help as Covid-19 spreads quickly throughout Japan. I’ve been holding my eye on the pair for some time now as I discover the technical setup very interesting, with the ultimate leg of a symmetrical sample underway, which may see USD/JPY break beneath 108.50 within the subsequent few weeks.
USD/JPY Every day chart
The primary half of the sample prolonged over two months, reaching its peak within the first week of July, at which level the reversal began, which is the second a part of the sample. I feel it has caught my eye principally as a result of each the rise and the pullback are following a really related sample, with increased highs or decrease lows being reached, however not in a steady kind.
The 5 most important peak on the primary half of the sample (marked by the black circle) all noticed a pullback earlier than a brand new excessive was achieved, and in a lot of the circumstances the correction went virtually so far as the earlier low, which allowed for additional bullish momentum to assemble. We’re additionally seeing this on the second half od the sample, the place the final three pullbacks (marked by the learn circle) all noticed a corrective transfer above 110.50 earlier than with the ability to lengthen decrease.
We’re now seeing this occur once more, and regardless of the correction increased taking longer to consolidate this time, I’ll be in search of a break above 110.50 within the subsequent few days with a subsequent reversal beneath 108.70, with a goal across the 108.50 space.
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— Written by Daniela Sabin Hathorn, Market Analyst
Comply with Daniela on Twitter @HathornSabin
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