Still above support but the bearish Cypher still in play
Last time I covered $USDJPY I mentioned two harmonic patterns - Cypher and AB=CD pattern (both bearish)
The small AB=CD pattern (blue) reached both of its target levels before the price pulled back and closed above the daily 18 SMA line (Fast SMA).
The fact that the price closed above its daily Fast SMA line is a signal that USDJPY is still strong.
We have plenty of JPY related news coming this week and it could determine the result of my Cypher pattern.
A close above 125.5 will violate the pattern. As long as the price remains above the Fast SMA line, it is an option.
A close below the Fast SMA could be the first bearish signal that will suggest that USDJPY can reach lower - 122 is my final target level for this bearish setup as the price will meet the uptrend line and the 200 SMA line
For those who entered at the top of the AB=CD pattern, the R/R was about 1:3.
The current R/R (assuming that the price will decline below 124, will offer about 1:1.5
The 50 days SMA line will also play a support role so it has to be monitored also
This analysis is part of the Weekly Markets Analysis newsletters
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The small AB=CD pattern (blue) reached both of its target levels before the price pulled back and closed above the daily 18 SMA line (Fast SMA).
The fact that the price closed above its daily Fast SMA line is a signal that USDJPY is still strong.
We have plenty of JPY related news coming this week and it could determine the result of my Cypher pattern.
A close above 125.5 will violate the pattern. As long as the price remains above the Fast SMA line, it is an option.
A close below the Fast SMA could be the first bearish signal that will suggest that USDJPY can reach lower - 122 is my final target level for this bearish setup as the price will meet the uptrend line and the 200 SMA line
For those who entered at the top of the AB=CD pattern, the R/R was about 1:3.
The current R/R (assuming that the price will decline below 124, will offer about 1:1.5
The 50 days SMA line will also play a support role so it has to be monitored also
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - goo.gl/jwBPQe
To subscribe to the newsletters - goo.gl/HXjCPV
