Price reached the Yearly R2 overnight, the target on higher timeframes as specified
earlier. This is the natural level for traders on higher timeframe to take some profit,
thus we may see a sell off from here. Since the trend is very strong, it is hard to say if it
will happen though, since many traders may just sit on their portfolio, at the back of
EUR rate hike expectations and see how far it may go from here. I like this level to look
for shorts, playing a bounce. USDJPY is heavily oversold on weekly timeframe and from
a pure technical view, all is set for a USD bounce, to correct this imbalance. The trendline
(white line) and Yearly R3 are the next upward levels from here. If price do pierce the
Yearly R2 at 1.2092 with a close, these levels will be in focus, perhaps after a retest of
the broken pivot. The natural destination for a larger retracement from here is ofcourse
the Kumo Cloud which currentrly lingers around the Monthly S1 just above 1.17. A larger
move down will eye the Yearly R1 at 1.1307. Note the clear bearish divergence on the
MACD indicator as these new highs have been carved out.
earlier. This is the natural level for traders on higher timeframe to take some profit,
thus we may see a sell off from here. Since the trend is very strong, it is hard to say if it
will happen though, since many traders may just sit on their portfolio, at the back of
EUR rate hike expectations and see how far it may go from here. I like this level to look
for shorts, playing a bounce. USDJPY is heavily oversold on weekly timeframe and from
a pure technical view, all is set for a USD bounce, to correct this imbalance. The trendline
(white line) and Yearly R3 are the next upward levels from here. If price do pierce the
Yearly R2 at 1.2092 with a close, these levels will be in focus, perhaps after a retest of
the broken pivot. The natural destination for a larger retracement from here is ofcourse
the Kumo Cloud which currentrly lingers around the Monthly S1 just above 1.17. A larger
move down will eye the Yearly R1 at 1.1307. Note the clear bearish divergence on the
MACD indicator as these new highs have been carved out.