As we expected by our latest analysis prices moved to new highs towards our resistance area of 1.1050-1.11 we mentioned yesterday. This is important resistance and I expect prices to make an important top in this area. I’m now bearish this pair as I expect prices to move lower and why not make a new lower low towards 1.02-1.03.
Price has reached the Ichimoku cloud and the 50% retracement and I now expect a bearish reversal.
This pair has broken short-term resistance and is heading towards the upper wedge boundaries.
Although price is above the Ichimoku cloud I believe this pair will get rejected at the 1.5250 area. So yes we might see some more upside towards 1.5250 but in the end I would expect prices to reverse lower back towards 1.50-1.49.
Yesterday we saw the trading range break downwards and gave a nice 100 pip profit for those who followed the sell signal. Breaking 122.20 was a great signal but now price has reached support levels. It can go a bit lower towards the 61.8% Fibonacci retracement but I will not be surprised to see USDJPY reverse upwards. I will be looking to enter long positions 121-120.50 where daily support is found. Huge resistance is the 123.70 level now. If broken expect to see 125-126.
As I said yesterday, I was bullish in the 0.72 area and this has provided us a nice short-term profit that we should not ignore. Price has reached the 78.6% Fibonacci retracement and the Ichimoku cloud resistance. Time to take profits.
The daily chart shows how price has reached support and bounced strongly. Important resistance is at 0.7375. If broken it will provide a huge bullish signal with targets towards 0.78.
As expected prices held above the channel and cloud support and bounced towards the upper channel boundary. Price is now very close to resistance and we should expect a reversal from around 0.6750. Huge long-term resistance is at 0.6850. As long as we are below that level we should expect a new low over the longer-term.
Is making a short-term reversal as price has reached the important resistance area of 1.3620. There are bearish divergence signals in the daily chart. Bulls need to be very cautious. However a final throwover above recent high cannot be ruled out.
In general I have shifted my views into favoring Dollar neutral or long positions from being bearish. Of course the FOMC meeting and expected rate rise next week will definitely have a huge impact at least for the short-term as then I believe we will see the final Dollar rally and a sell the news reversal will follow.
Trade safely and always use stops. If you feel insecure…use less leverage as my trading warrior brother Dale Pinkert says.