*slightly messy chart*
Mistakenly used this analysis profile during the live stream, but it still presents several very valid points.
Yesterday the USDJPY was trading higher bouncing off the 130.60 price level, and climbing steadily to the 131.70 price level, despite the consolidation on the DXY.
The 131.70 price level was crucial as it coincided with
- 61.80% Fibonacci retracement level
- bearish trendline
- formation of the inverted head and shoulder pattern
With the anticipation for a resumption of weakness on the DXY, we were looking for the price to reverse from the bearish trendline to trade back down to the 129.80 price level, with a slight hesitation at 130.60.
At the current price level, with the USDJPY sitting above 130.60, a continuation to the downside can be expected, especially if the DXY continues to weaken.
Look for the price to retest the key support level of 129.80. Although the next support level is at 128.15 (last tested in February) it is unlikely that the price could reach this level by today.
Mistakenly used this analysis profile during the live stream, but it still presents several very valid points.
Yesterday the USDJPY was trading higher bouncing off the 130.60 price level, and climbing steadily to the 131.70 price level, despite the consolidation on the DXY.
The 131.70 price level was crucial as it coincided with
- 61.80% Fibonacci retracement level
- bearish trendline
- formation of the inverted head and shoulder pattern
With the anticipation for a resumption of weakness on the DXY, we were looking for the price to reverse from the bearish trendline to trade back down to the 129.80 price level, with a slight hesitation at 130.60.
At the current price level, with the USDJPY sitting above 130.60, a continuation to the downside can be expected, especially if the DXY continues to weaken.
Look for the price to retest the key support level of 129.80. Although the next support level is at 128.15 (last tested in February) it is unlikely that the price could reach this level by today.
