A Deep Pullback Or Trend Reversal on The USDJPY?
We last posted on the USDJPY on March 30th when price had pulled back to resistance and was showing signs of weaknesses.
What we wanted to see was momentum to the downside and for the bears to take price through the low of last month March. This failed to materialise and instead we have seen price break through resistance and for the bulls to take price through to the next highlighted above.
Tuesday’s price action has ended in the form of an indecision candle which at resistance is an encouraging sign of a move back down. However, this has to be confirmed by price itself. Never predict weakness in this scenario and start taking short positions. This is bound to lead to losses that can avoided with patience. Instead, let the market shows its hand first and then react accordingly.
Further up we have the resistance cluster of the round number 110 and the 200SMA. If the bulls do continue to gain momentum then we will look to exit our trade for a small loss.
It is a waiting game for now to see what price dictates.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!