05 - Jun - 18
Welcome to another week of Forex Action! Taking a close look at USDJPY we can see that after our bearish bounce off the long term descending Trend line and forming a new lower low, we have had some bullish momentum after coming painfully close to the 108.00 target!
Now its important to note that the same area where we saw the bearish bounce off the long term Trend Line around 111.00, was acting as a strong area of support in the last 2 month of 2017 and was breached in January of this year, where we witnessed a 400 pip move to the downside. The Paid Technical Floor members and I were in on that move and cleaned up!
We have essentially retraced back to the 111.00 retesting it as resistance and forming a lower high on the Macro Timeframes. We are now a few pips away from retesting 110.00 and if we respect this area as resistance I would expect this pair to have officially formed a lower high on the 4H timeframe, therefore following with a bearish continuation to 108.00 and beyond.
With no major news to affect UJ we should have some smooth price action movement throughout this week.