On Friday, the pair closed in the middle of the channel created by the M_PP and M_R1, after previously having tested the M_R1 and getting rejected. Closing price at 109.97 leaves room for both moves, bullish and bearish. If we take into consideration the move from the short term perspective, we have been in uptrend since the 23 March 2018. Even though after reaching the top of the move on 21 May 2018 the pair retraced and made a lower low in contrast to what was expected for uptrend, it looks like more of a fake breakout because the price again continued on the upside, this time with much lower strength. From this perspective, we can expect at least another test of the M_R1 but we will take for this week some more cautious view on the market and we will be based more on the long term trend which is downtrend with expected resistance almost exactly at the M_R1. We will be waiting for a short move if the price reaches and tests the M_R1 at 110.763.
Comment:
The pair moved downside on the part of the week and found support at M_PP 109.437 again, same way as it did few times lately. Currently the price is at 109.90 and is heading upside. We expect a test of the M_R1 again where the price could meet also the declining trendline which may be additional resistance and should have taken bears attention. We will expect for a possible short position at this area.
Comment:
From the beginning of this week until today, the price of the USDJPY was in a very bullish mood, after testing early in the beginning of the week the M_PP levels at 109.437 which represent now a reliable support zone. We were expecting a test of the M_R1 at 110.763 to happen earlier this week but the price did the contrary, tested the M_PP, so for this reason we stayed flat on trading this pair. M_R1 level will represent this week too a key level for our Sunday's Market analysis.