As we reached a previous support/resistance zone, I can see 3 scenarios playing out.
1) We breakthrough to the upside and continue to the upside
2) We start ranging
3) We don't have strong bid support and grind back downwards.
For the analysis I'm using Kathy Lien's double bollinger bands.
Since the dollar yen is between the 1st and 2nd standard deviations on the upper channel, it is theoretically in an uptrend.
In my opinion, any trade going near that zone should have this level in mind.
1) We breakthrough to the upside and continue to the upside
2) We start ranging
3) We don't have strong bid support and grind back downwards.
For the analysis I'm using Kathy Lien's double bollinger bands.
Since the dollar yen is between the 1st and 2nd standard deviations on the upper channel, it is theoretically in an uptrend.
In my opinion, any trade going near that zone should have this level in mind.