GeorgeZii

USDJPY | A new impulse cycle begins

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GeorgeZii Uppdaterad   
FX:USDJPY   USA-dollar/Japansk yen
During the pre-election times, USDJPY was a bit of stressed; didn't really have a clean direction... Until Biden gets elected. Then investors seemed to find somewhere to step up in order to start the process again.

As you can see in the chart below, the Daily Outlook of the market is a clear Falling Wedge that seems to have set the path, at least in the long term aspect. Days after the election news about the Pfizer vaccine came out (coincidence...? not this day's topic haha), and that was the catalyst event of the week after elections. COVID-19 and the global economic slowdown is the main reason for a risk-off move, so that's why we're at this point today.

After hopes made an entry though, we saw JPY (and CHF) being devastated as their demand fell sharply. Dollar became strong as investors came back for a new risk on move, hence the big leg to the upside. In my eyes, this is just the beginning of a bullish dollar. So after we set the fundamental ground, let's talk technicals.

Price made a bullish move stopped at the important figure of 105.50, stalled and in the end of the week we saw that it comes back to the previous levels. To me, this is just a pullback before I bigger move to the upside, and so, I am looking for buys around the 61.80% Fib retracement level which seems to be nicely aligned with a crucial level at the market. My hypothesis is also supported by the DXY chart that is posted below.

Hope you all have a great trading week! Cheers! :)
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USDJPY, 1D
Kommentera:
DXY, 4H
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