USD/JPY
Possibility of validating a shooting-star
These chart patterns have one thing in common, for the top side of the pattern they tend to reverse whether it takes one day to validate the direction or as much as two or even three days.
Lets go over each of them.
October 2017, it was a rounding top with a momentum picking up speed at the crossover of the 114 and 113 levels, it was not as powerful
December through January the three mini peaks. The dollar has been losing its ground against the Yen, and these may have been decent range trades, we weren't involved in them, any time it marginally goes above 113 it gets quickly shut down, but notice the highs are just slightly less higher than the previous (sequencing)
In January the top was a bit of a "former support becomes resistance" where the drive up to 111 was met with a measured move down.
The most powerful one in my opinion is the early February one, it even correlated with the shake up in the stock market. It was a one candle reversal and a bearish engulfing pattern
Recently the tops in the USD/JPY - dollar weakness relative to Yen strength are more confrontational tops meaning they are taking their time to roll over. The thought process is one of needing to be totally sure that the pin-action would occur late (the right side edge of the chart) and maybe Yen bulls are a bit cautious in this instance.
No comments:
Post a Comment