Correction nearly complete for USDJPY
USD Index Weekly: The index has traded to the lowest level in 159 weeks. This has resulted in signals for sentiment being at oversold extremes. Levels below the trend of lower lows (from Q3 2015 and Q2 2016) are finding buyers. A break back above 91.00 would reignite USD bulls.
One currency pair that would take advantage of this reverse in trend is USDJPY.
MONTHLY: Possibly a very large bullish reverse Head and Shoulders pattern. The most important factor here is that levels close to November 2017 Marabuzo level at 109.63 continue to attract buyers.
WEEKLY: Looks to be in a large triangle formation. The trend of higher lows (support) is seen at 110.00
DAILY: Holding within a bearish channel formation. The move to the downside is mixed and volatile, common in corrective patterns. DeMark has posted an 8 count on the daily chart. Correction counts start at 9 so there is scope for further mild selling. We have a 61.8% pullback level at 110.15. Setting longs at this level with a stop outside the aforementioned triangle base offers a solid risk/reward trade.
One currency pair that would take advantage of this reverse in trend is USDJPY.
MONTHLY: Possibly a very large bullish reverse Head and Shoulders pattern. The most important factor here is that levels close to November 2017 Marabuzo level at 109.63 continue to attract buyers.
WEEKLY: Looks to be in a large triangle formation. The trend of higher lows (support) is seen at 110.00
DAILY: Holding within a bearish channel formation. The move to the downside is mixed and volatile, common in corrective patterns. DeMark has posted an 8 count on the daily chart. Correction counts start at 9 so there is scope for further mild selling. We have a 61.8% pullback level at 110.15. Setting longs at this level with a stop outside the aforementioned triangle base offers a solid risk/reward trade.
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