USDJPY – Bullish Morning Star formation dominates
Monthly: The long-term outlook is for higher levels with the pair posting a potential bullish reverse Head and Shoulders formation. A break of 126.70 (neckline) is needed to confirm the formation. The correction lower has stalled and a morning doji star formation has been posted.
Weekly: Prices have reacted from a low of 104.63 with an AB=CD formation targeting a move higher towards 124.52. Trend line resistance sits around 113.00 and we look for a re-test over the coming weeks. Prices have also reacted from the base of the Weekly Ichimoku cloud.
Daily: Price has reacted higher from the 38.2% Fibonacci retracement level (109.91). A fresh upward trending support comes in at 109.83 and oversold conditions leaves the USDJPY looking prime for a correction higher. The bullish ending wedge formation requires a break of 111.08 for confirmation before targeting the previous swing high at 112.15.
Action: We look to buy at 110.40
Target: 112.15 & 113.17
* UPDATE 05/09/2018 07:32:00 – Prices have moved to the upside move stop to 110.60
CLOSED OUT AT 110.60