USDJPY Tests EMA200 While Forming a C&H With a Bullish Crossover
USDJPY pair seems to be forming a bullish cup and handle pattern, on the hourly chart. Also, we saw a bullish crossover of the EMA-25 over EMA-50 and EMA-100 today.
Meanwhile, USDJPY is heading toward the EMA-200 testing its support while it may be forming the handle of the cup.
USDJPY has to swing within the descending channel while we are waiting for a breakout from it. If a breakout would happen, the first bullish target would be 130.614 and the green shaded area between 131.343-131.580 levels.
A further breakout from the previous green area will set the area between 132.523-132.874 as the next possible bullish target.
On the other hand, breaking and closing below the EMA-200 may invalidate the previous bullish hypothesis and set the red area between 128.911-128.728 as a bearish target, and the area between 128.354-127.898 as a further possible bearish target.
On the fundamental front, the week ahead features the minutes of the Bank of Japan's policy meeting as well as the Manufacturing PMI Flash on Monday and Tuesday.
Meanwhile, USDJPY is heading toward the EMA-200 testing its support while it may be forming the handle of the cup.
USDJPY has to swing within the descending channel while we are waiting for a breakout from it. If a breakout would happen, the first bullish target would be 130.614 and the green shaded area between 131.343-131.580 levels.
A further breakout from the previous green area will set the area between 132.523-132.874 as the next possible bullish target.
On the other hand, breaking and closing below the EMA-200 may invalidate the previous bullish hypothesis and set the red area between 128.911-128.728 as a bearish target, and the area between 128.354-127.898 as a further possible bearish target.
On the fundamental front, the week ahead features the minutes of the Bank of Japan's policy meeting as well as the Manufacturing PMI Flash on Monday and Tuesday.
Trade closed: target reached:
First target reached. The second is still intact.