Due to the weakness of the Japanese Yen, JPY pairs have been absolutely impulsing for the past few weeks.
Taking a look at the Daily timeframe chart of USD/JPY, it can be inferred from the recent few candles that the price is losing its bullish pressure and needs some corrections before continuing its growth.
Zooming into smaller timeframes, we can see that after forming some sort of a sideways-moving rectangular box, the price has managed to spike above this range, and that now it is trying to get back within the borders of it.
Implementing the Fibonacci retracement tool on the DAILY timeframe graphic and drawing it from the beginning of the impulsive leg to the end, it can be observed that the 0.5 level perfectly lines up with the zone of previous resistance later turned support that is illustrated on the chart.
We are gonna closely monitor the price action and and wait for confirmations before entering short positions and aiming for the target plotted on the graph.
Happy Monday, everyone!
Taking a look at the Daily timeframe chart of USD/JPY, it can be inferred from the recent few candles that the price is losing its bullish pressure and needs some corrections before continuing its growth.
Zooming into smaller timeframes, we can see that after forming some sort of a sideways-moving rectangular box, the price has managed to spike above this range, and that now it is trying to get back within the borders of it.
Implementing the Fibonacci retracement tool on the DAILY timeframe graphic and drawing it from the beginning of the impulsive leg to the end, it can be observed that the 0.5 level perfectly lines up with the zone of previous resistance later turned support that is illustrated on the chart.
We are gonna closely monitor the price action and and wait for confirmations before entering short positions and aiming for the target plotted on the graph.
Happy Monday, everyone!
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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.
Disclaimer
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.