Last Sunday when we concluded our weekly technical analysis for the USDJPY pair, we had strong expectations for a bullish run of the pair up to the Monthly R1. On the first part of the week the price action unfolded as expected but then on Thursday and Friday the bulls lost their strength and price returned back to where it started the week, on the Monthly PP where it also closed. Since the price tried to break below the Monthly PP but could not manage to close below it, we can conclude that this is a support zone guarded by bulls and we expect the USDJPY bulls to act here again. For this reason, our bias on the market are still bullish for this week and we will try to get a long position around the Monthly PP and try to ride it to the Monthly R1 if the price moves on the upside. Our technical analysis will be invalid if the price action proves that Monthly PP is not a strong enough support.
Trade closed manually:
Until today, the price action unfolded exactly as we expected. It opened on Sunday only few pips below the Monthly PP but immediately the bulls took in charge and pushed the price above the line. Then it went upside with a strong move for about 100+ pips. We still expect the move to continue higher, with the first resistance area in sight at Monthly R1.
Comment:
It was a perfect upside move for the USDJPY pair as expected from the Sunday's analysis. The price had a very strong bullish run for over 130+pips from the M_PP up to the M_R1 where our TP was planned. After reaching the M_R1, the pair reversed immediately, which is what makes this area a structure to watch for the weekend as a possible resistance structure.