USD/JPY - Critical Point Spotted! Breaks or not?
Hey folks. A little bit of FX today:
USDJPY is at the bottom of the red corridor (Daily chart). If you also look at a 4h chart you will notice that USDJPY has reached the "ceiling" of the blue corridor that I constructed based on local support and resistance levels. MACD crossed at the very bottom at around (-1) area which indicated an upcoming upward momentum. RSI is useless right now though it is going upwards as well. Aroon Down is ABOVE Aroon Up - which is a SELL signal. Take into account the USDJPY is currently very close to 61.8% Fibonacci retrace (support level is also very close to this retrace). The breakout of 61.8% would indicate a strong downside momentum which would open a road down to 105.5. On the other hand, if USDJPY breaks its 4h formed descending corridor (the blue one that I constructed) if would suggest an bullish trend up to 1st small target of 107.8 and then 108.5 if momentum is strong enough.
Right now I would stay away for a while from USDJPY because it is at critical point. I need to see which line it breaks.
Please REMEMBER that I give you my observations, you form your own opinion and trade it accordingly!
Please NEVER forget to do your own research before considering any investment. Fundamental analysis is also crucial so you have to read the news, updates and about the upcoming events related to a particular blockchain project.
Hope you will find my analysis useful! Stay safe ----> Hedge ----> Diversify ----> Be cautious! - Together we will beat the market!
USDJPY is at the bottom of the red corridor (Daily chart). If you also look at a 4h chart you will notice that USDJPY has reached the "ceiling" of the blue corridor that I constructed based on local support and resistance levels. MACD crossed at the very bottom at around (-1) area which indicated an upcoming upward momentum. RSI is useless right now though it is going upwards as well. Aroon Down is ABOVE Aroon Up - which is a SELL signal. Take into account the USDJPY is currently very close to 61.8% Fibonacci retrace (support level is also very close to this retrace). The breakout of 61.8% would indicate a strong downside momentum which would open a road down to 105.5. On the other hand, if USDJPY breaks its 4h formed descending corridor (the blue one that I constructed) if would suggest an bullish trend up to 1st small target of 107.8 and then 108.5 if momentum is strong enough.
Right now I would stay away for a while from USDJPY because it is at critical point. I need to see which line it breaks.
Please REMEMBER that I give you my observations, you form your own opinion and trade it accordingly!
Please NEVER forget to do your own research before considering any investment. Fundamental analysis is also crucial so you have to read the news, updates and about the upcoming events related to a particular blockchain project.
Hope you will find my analysis useful! Stay safe ----> Hedge ----> Diversify ----> Be cautious! - Together we will beat the market!