USDJPY – Bullish Morning Star formation dominates

Bullish Morning Star formation dominates

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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

Stop: 109.40

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

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Steve has traded and analysed financial markets for over 30 years. He started on the Baltic Exchange with Cargill Investor Services in 1987 trading Commodities. Following this Steve went on to work in a number of senior trading roles on LIFFE. From 1995, Steve then traded his own account, specializing in European Fixed Income markets. For many years he ran his own proprietary trading company, facilitating and educating traders. In 2012 he joined PIA-First and assisted in restructuring the company and help build it into one of the UK’s leading, award-winning independent research houses.

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Steve has traded and analysed financial markets for over 30 years. He started on the Baltic Exchange with Cargill Investor Services in 1987 trading Commodities. Following this Steve went on to work in a number of senior trading roles on LIFFE. From 1995, Steve then traded his own account, specializing in European Fixed Income markets. For many years he ran his own proprietary trading company, facilitating and educating traders. In 2012 he joined PIA-First and assisted in restructuring the company and help build it into one of the UK’s leading, award-winning independent research houses.

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