- 1H: The latest update “Stalking Near-term Bears“, noted a possible triangle pattern and adjusted the anticipation to a small correction, especially with the RSI in 1H time-frame holding mostly above 40.
- The market rallied in the end of yesterday’s US session, consolidated in the European session, and broke above the triangle heading into today’s US session.
- As I mentioned before, this would be a bullish indication in the intermediate term.
- 4H and Daily: Continuation price action in 4H time-frame was a good sign to kick off this second bullish leg.
- The area near 94.50 may provide some resistance against the current rally. The 94.10 area is 78.6% and may already be slowing down the pair’s bullish attempt.
- In the short-term though, we do see strength lined up with the intermediate trend as the SMA 50 is above SMA 200 in the 4H chart. In the daily, the SMAs are crossing, and thus providing a bullish signal in the intermediate term.
- If you have followed my posts on the USD/JPY, you know this is a key confirmation for an intermediate bullish outlook towards 101.50 area.
- The near-term target should be around 94.50, but the short-term swing projection seen in the daily chart is 96.50.
- The daily swing projection is based on a positive RSI reversal.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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