- Daily and 4H: The USD/JPY is showing continuing bullish attempt towards the declining resistance.
- After holindg 88.00, the pair bounced and paused first after a 61.8% retracement at 90.70. After a short correction to 89.75, the pair is rallying again.
- The current rally may see resistance at the 91.30-91.50 area. This is the 78.6% retracement of the previous swing, and a 61.8% retracement of a larger scale decline.
- The declining trendline is an important line to break if the market is to be bullish in the intermediate and long term.
- So far, bullish attempts have been limited to the short-term context within a long-term decline.
- In fact, if there is topping action near 91.30, further decline to wards 87.00 is possible.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
