Forex Trading Library

USDJPY – Fibonacci confluence area to halt buying. Selling into rallies

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Monthly: Holding within a corrective channel formation. A break of support at 106.70 opens the way for a more aggressive corrective AB=CD formation. The measured move target is 92.00. This is just below the 61.8% pullback level of 94.77 (from 75.56-125.86)

Weekly:  Broken out of the channel formation to the upside. Reverse trend line support is located at 110.20 (target 1). We have posted an Evening Doji Star pattern. This often indicates the top of a trend.

Daily: Dip buying from 111.35. Two areas of resistance on the daily chart:

1.       We have the 61.8% pullback level at 113.33 (from 114.53-111.35)

2.       Previous swing high of 113.17 (19th July)

To the downside, bespoke support is located at 109.67, just in front of the 161.8% extension level of 109.40 (114.53-113.35) (Target 2)

Intraday (1-hour) – Moving higher in an impulsive manner. The 261.8% extension and possible completion of a 5th wave, is seen at 113.28 (from 111.38-112.10). This lines up with the previously noted daily resistance and is regarded as the prime zone to get short.

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