The USD-JPY pair continues to trend lower as the Yen remains strong against a USD that was stable, but range-bound, throughout last Monday’s trading session.The stronger Yen augurs risk aversion, as the Yen is sold or borrowed primarily when risk appetite is present, as the purchase of more risky and higher-yielding assets are funded by borrowing, that is, selling, Yen, due to its low 0.10% Central Bank rate.
Bullish equities movement is best confirmed when Yen is sold against the USD and the EUR.
The Falling Wedge pattern on the USD-JPY’s daily chart shows that the Bearishness over the last 40 candles has formed a strong downtrend; this is confirmed by Autochartist’s seven-bar Initial Trend reading. Any reading greater than 6 bars indicates a trending market. (See Chart Below)
The current push South towards support at the Wedge pattern’s bottom line shows that prices are likely to test the 2 prior lows at 86.97 and 87.02.
A break of this support level would likely push prices closer to the downtrend line support level at 86.60 (A).
Do not underestimate the support that is likely waiting at the whole, round number known as a ‘Big Figure,’ as price levels ending in ‘00′ are called.
If prices can rally from the pattern’s support, look for selling pressure to be waiting at 90.20 (B).
0 comments:
Post a Comment
Note: Only a member of this blog may post a comment.