Happy valentine to you all traders!
I haven’t discussed much on the USDJPY for some period of time now, due to the fact the currency pair isn’t respecting my constructed key-levels.
The currency pair had been in an intermediate bullish trend right from its low from August of 2019 and it did broke its long-term bearish trend line in January of this year 2020. Remember we had a formation of an inverted head and shoulders which constitute to the upward bullish momentum for the currency pairs.
Although the breakout of the long-term bearish trend was a fake breakout which resulted into another short term bearish rally of 195pips which built up a swing high low @108.304. This swing high for now is still yet to confirm a new high swing.
Take note we have a potential key-level to watch out for @109.631 qhich is currently acting as a key support level as of the time of posting this content.
Viewing this chart with an eagle eye one would notice price is caving a narrow wedge and which is a technical signal of indecision of direction breakout(price can either break upside or downside).
SO WHAT’S NEXT ON USDJPY?
We have to respect the fact there’s a potential keylevel resistance which lies @110.937 also we need to put into consideration the bullish reflection of the inverted head and shoulders. Well I’m not a fan of taking upside breakout of a narrow wedge for the fact most do result into a bullish trap.
A daily close above key-level @109.631 may interest buyers to pull price up for an upward breakout while failure for the bull to defend the 109.631 zone may interest sellers to retest key-level support @108.304 which may interest way to support @106.671.
To get access to my trading decisions on this currency pair click here now 👉:https://bit.ly/2SL1h0L
What do you think about USDJPY?
Remember the comment box is all yours..👇