USDJPY Overbought
The week has not finished as yet, but what is developing is interesting.
When price trends , its tend to not move too far away from from Equilibrium. With Ichimoku this is represented by the Tenkan Sen and Kijun Sen lines.
In a steady uptrend or downtrend price moves within a distance of these lines with a given regularity. This can be seen in the chart from Jan 21 to April 22.
When volatility increases and price moves to " far away " , then a reversion to the mean (equilibrium) will take place. This has occurred recently ( Early May 2022) .
The current week is too far away from equilibrium price. The candlestick may become a Shooting Star.
The Weekly Tenkan Sen is the obvious target for a retracement at 1.31 ( a significant weekly Support/Resistance Zone) .
The KUMO is extremely well established and likely we will see price break 1.37 following an anticipated retracement.
When price trends , its tend to not move too far away from from Equilibrium. With Ichimoku this is represented by the Tenkan Sen and Kijun Sen lines.
In a steady uptrend or downtrend price moves within a distance of these lines with a given regularity. This can be seen in the chart from Jan 21 to April 22.
When volatility increases and price moves to " far away " , then a reversion to the mean (equilibrium) will take place. This has occurred recently ( Early May 2022) .
The current week is too far away from equilibrium price. The candlestick may become a Shooting Star.
The Weekly Tenkan Sen is the obvious target for a retracement at 1.31 ( a significant weekly Support/Resistance Zone) .
The KUMO is extremely well established and likely we will see price break 1.37 following an anticipated retracement.
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