USDJPY: Halts Weakness On Hammer Candle Pattern Formation, Begins Corrective Recovery.
USDJPY- Having been on the offensive for the past four weeks, USDJPY saw a halt in that weakness after hitting its lowest price since Mar’1995 at 95.75.The mentioned stop in the current decline has seen the pair forming a hammer candle pattern, a bottom reversal signal. If a follow through to the upside occurs, the 100.00 level, its psycho resistance will come in as the initial target where a break will open up upside risk towards the 101.68/86 zone, its Nov’04/Jan’05 lows followed by its Mar’05 low at 103.66 and next its May’05 low at 104.20.Its earlier mentioned strong psycho resistance at 100.00 is expected reverse roles and provide resistance ahead of the other levels mentioned above. On the downside, reversing the past week’s upside gains will invalidate the efficacy of the said hammer candle pattern and bring the resumption of its medium term weakness towards its 1.272 Fib Ext at 95.34 and then its 1.618 Fib Ext. at 87.51.On the whole, the pair remains pressured to the downside in both the medium and longer term despite current recovery effort.
Directional Bias:
Nearer Term -Mixed
Short Term -Bearish
Medium Term -Bearish
Weekly Range:
High -100.45
Low -95.75
**in nearer term, i would suggest you guys to go for bull. wait till the price hits 101.68/86 zone, then open a bear position. at this point of time, its wise for us to use the pending order strategy with hedging. although you’ll find yourselves in a floating manner, just sit back and wait till the JEPONG hits back. targeted weekly range at 100.45 can also be a strong resistance price. once again, don’t afraid to lose. its part of the game! hepi trading!
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