This is a very interesting chart.
Normally I don't look at monthly charts - but this one is special.
Lots of lines on the chart - but take a moment and I'll go through it with you.
Firstly I realize that most people trade currencies do so with CFDs - which is fine but the banks/funds that push the market around look at Futures Market.
The red dotted line is a broken trendline ( I will add these trendlines are drawn by an algo - its what the algos see and interact with - if interested DM and tell you how to get them.
Back in July we were positively divergent on RSI as (green dotted line) we were at the bottom of a known support level and the market was trying to go up. (Blue arrow points to positive divergence on RSI.)
This was broken - with everybody long they jammed it down. Ouch - Its what they do.
This created a new triangle - much larger, but currently untested - bottom blue dotted line.
In the middle of that is an orange angle bisector (part of the algo) - and its exactly where prices stopped - exactly creating a 2.0 Fib Retracement. Sounds like something a computer program would do right?
This reaction is an acknowledgement that we are now working with these larger trendlines -this means that eventually the Yen will be going down a lot more. However this could be months or even years away.
This happened this week. Could we put in a double bottom? maybe but I wouldn't count on it.
So now what? Well we hit a Naked Point of Control from last week today. We have back backed off a little - there are numerous untouched Naked Points of Control above and maybe we'll return to them - of course its hard to know.
The median price for the year and Naked Point of Control (confluence) is at 0.08970 - I would think we make it back to that - and really a rejection there would make sense.
Good luck
$GLOBALPRIME:USDJPY
Note
Correction: The median price is that since this breakdown happened - not for the year.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.