Before:

USDJPY Update.PNG

After:

USDJPY Update 1.PNG

As expected we ranged around the zone I mentioned, and once we broke out of that box to the upside, we retested at hit my first target of 110.400 as it was a broken support and this is the first time we are retesting it.


Upcoming USD News:

  • Monday
    • ISM Non-Manufacturing PMI
      • Previous: 55.9
      • Forecast: 56.5
  • Wednesday
    • Crude Oil Inventories
      • Previous: 6.8M

Monthly: Monthly closed with an extremely bearish candle but still did not break down from the monthly triangle we have on USDJPY. We could be possibly looking at creating a top wick then breaking lower but we can never be sure. We will have to see how this month’s candle closes.

USDJPY Monthly.PNG

Weekly: As you can see as USDJPY touched the monthly trendline we had a very bullish weekly close. The range is getting tighter and tighter, so we will have a breakout any time soon and when we do, we will go to the next major zone.

USDJPY Weekly.PNG

Daily: Look left and you will see we rejected a very strong support after ranging down there for a few days. Now we finally came to 110.400, I am watching this level very closely as this could be out Lower High on the daily timeframe, which means we could continue lower. If we break above then I will feel confident that we will continue to the previous highs or at least 112 price range area.

USDJPY Daily.PNG

H4: Here you can see in detail the box trades we had. You can see that the first box on the left we broke but never retested, and where price is now could be its first retest and a creation of a lower high on the daily time frame. The 2nd  box broke and you can see after the break we came back down and retested + consolidated before continuing upwards.

USDJPY H4.PNG


Overall USDJPY Analysis

As we hit a potential zone where the Daily lower high can be formed and on the monthly we could be creating a top wick before we continue lower we must keep an eye out at this level.

So be patient, wait for confirmation and let market structure tell you where it wants to go.


Predicted movement:

USDJPY Prediction

Either we create the daily lower high and continue down or we come back down to retest broke resistance and create a higher low and continue higher to create a higher high.

 

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