USDJPY Bullish Retracement but Alertness to Resistance Levels
*DISCLAIMER* This is not trading directions or direct advice but an observation. I am relatively a new trader so this is learning oriented for other new traders***
As the populism news occurring last week is more or less "normalizing" we are treated with quite understandable patterns. The technical pair USD-JPY hasn't surprised us if we take a step back and look at the 4hour and hourly charts.
After the bearish fib pattern in the last 2 weeks of January, we can see another smaller pattern occur in these early days of February. This bat like figure supports the bullish retracement, though I do admit the alignment is off... and some data manipulation/estimation is used.
Some reasons for the smaller reaction include FoMC chair Janet Yellen's announcement not mentioning a hike in March leading to many giving up the recent dollar rallying cry.
The Japanese yen has also seen fallback while a large majority of the market has been selling dollar. The US government is aggressively looking at other currencies in a "fairness balance," but what they can actually do about it is limited.
Nevertheless, fundamentals tell us that there will be a bullish retracement.
How far and what time frame is what we try to look for in forex.
If you want to learn more I suggest reading "Gartley Patterns" and understanding fibonacci numbers, find out what "0.618" means.
Entry Point 112.3 ;(I wanted to enter at 112.1 but missed it)
Take Profit 113.5-6
Stop Loss: 112.0
Good luck and always continue learning!
As the populism news occurring last week is more or less "normalizing" we are treated with quite understandable patterns. The technical pair USD-JPY hasn't surprised us if we take a step back and look at the 4hour and hourly charts.
After the bearish fib pattern in the last 2 weeks of January, we can see another smaller pattern occur in these early days of February. This bat like figure supports the bullish retracement, though I do admit the alignment is off... and some data manipulation/estimation is used.
Some reasons for the smaller reaction include FoMC chair Janet Yellen's announcement not mentioning a hike in March leading to many giving up the recent dollar rallying cry.
The Japanese yen has also seen fallback while a large majority of the market has been selling dollar. The US government is aggressively looking at other currencies in a "fairness balance," but what they can actually do about it is limited.
Nevertheless, fundamentals tell us that there will be a bullish retracement.
How far and what time frame is what we try to look for in forex.
If you want to learn more I suggest reading "Gartley Patterns" and understanding fibonacci numbers, find out what "0.618" means.
Entry Point 112.3 ;(I wanted to enter at 112.1 but missed it)
Take Profit 113.5-6
Stop Loss: 112.0
Good luck and always continue learning!
113.7 resistance, proved actually to be 113.44
NFP news assisted this heavy drop.
Overall, we will see retracement a few times next week. New resistance forming near levels we have seen.