Prices in USD/JPY have continued to rise inside the upward sloping channel, but we believe that this rise is close to an end. 99-99,50 is where the upper part of the channel based. I believe that a pull back should be expected from that area. However trend remains up as long as prices trade above 92,50/ At that level is where the intermediate term trend changes to down. Moreover, the pattern of the rise from 77,30 looks complete and I think a good corrective pull back towards 90 can be expected as a minimum corrective target.
Summarising, trend remains up but should be cautious as prices can pull back towards the lower part of the upward channel soon. We believe that the upward target of 99,50-100 can first be achieved before the correction starts. Nevertheless bulls should be on high alert to cover their longs. Short term warning signal will be given if prices fall below 97,20.
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A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.