Some very interesting price action setting up this week across the majors, along with the global indices, but today I’m going to focus on the USDJPY which is in an incredibly strong bull trend ATM.
Looking at the daily chart below, we can see 5 bull closes in a row, and this coincides with 5 weekly bull closes in a row.
The key for the pair was taking out the 105.35 (former yearly resistance) which in doing so, confirmed the breakout structure and bull trend for another leg up.
I’m looking to buy on pullbacks, and am open to having several positions at key layers.
An aggressive entry IMO would be around 106.03 which was a pit stop on the way to the weekly 107.33 highs this week.
Below here, there is a large support layer, starting at 105.35 down to 104.75 which I’d be open to getting long on pullbacks.
Intra-day, watch the 107.33/107.13 resistance/support zone which dominated the price action on Friday, offering range plays on both sides.
Hence I’ll be a buyer on pullbacks, and look for the bull trend to continue.
Beyond 107.30/60, the next major resistance comes in around 110.30 and then 113.45, so quite a lot of upside available.
A mixed bag of price action across the board. EURUSD after popping higher to 12980 now stuck below 2950, USDJPY pops that drops trying to get back into the consolidation near the highs (between 107.14 and 107.34).
US Indices have closed the gap and are now threatening to make new intra-day highs, while European indices holding ground, but still below daily highs with FTSE 100 the worst off thus far.
Meanwhile Nikkei 225 support at 15800 that we’ve talked about last week still holding after 2 threats today.
A very interesting start to the week. Sellers clearly more present in the US indices, but buyers keep coming in on dips, even if those dips are lower, so prevalent buying interest there despite short term losses.
Most institutional players still seem interested in selling majors vs. USD.
yeah some brokers do it that way
if you are trading intra-day, then it doesn’t matter too much
if your trading is based solely on daily candles, and you live in the USA, then the NYC charts would be better
Currently the pair is heading towards the 9045 resistance from that double bottom formation, thus attempting to form a base to push higher.
To ‘activate’ the double bottom, the pair will have to clear the 9050 resistance level. Should it do so, then the next ST resistance level does not come in till about 9112. I’m still preferring to be bearish and sell on rallies, but the pair seems to be taking a breather as this is the longest consolidation since the sell-off from 9400 early this month.
I am working cable as a hit and run for now. After the vote is done then i’ll look for a longer term set up.
I would do the same thing for EU , but that would be an over kill for me.
Definitely a corrective structure. While AU & GU bounce off lows, EU goes nowhere
Seems like its unable to inspire buyers. Im guessing Scottish No vote helps, but then the issues of Catalan independence, french voting and Ukraine come up, so no bueno either way for EU me thinks.
WHOA is all one has to say from the FOMC meeting. USD took on all comers and bloodied them all up.
USDJPY was the big winner IMO, and continues to press the upside in a very strong bull trend. Although a pullback seems coming soon, I’m happy to buy on pullbacks into support several layers down as I suspect a long term trend is in the works, probably in phase two of three, with a potential upside of 114 and 123 medium term.
Take a look at the 5 minute chart below showing the stair stepping structure, with each resistance level becoming support (thus a role reversal level).
Good breakout pullback setup off the level. The level you spotted was a good one, for even though it was in between two swings, there was a consolidation there prior, and then the selling pressure was absorbed by the buyers there, so nice location.
Profit target was logical at the prior swing highs.
Thanks was a bit off reservation for me but your analysis gave me confidence and was with trend so very happy with result.
Where do you think it goes from here? Was tempted to go short but lack confidence on reversals, will wait and watch to see if price returns to near 108.52 and look for an opportunity to go long again.
Short term the ever continual bullish structure seems to have been broken for now, since we have our first swing high not holding, and forming a swing low with the recent pullback to 108.63…
My guess is neutral to bullish bias intra-day, with likelihood of a pullback.
Buyers will likely then step in, and continue the bull trend
I suspect a larger bull trend is in play, and that pullbacks will be bought by institutional players
Am thinking 110.30, 113.45 and 123 will be hit near, medium and long term before 102 is broken
