USD/JPY: Ready to Explode, Higher or Lower?

Published date: 05/02/2019
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Good Afternoon Traders,

Currently, on USDJPY we are at a very crucial point, where we can see the price is being compressed within the triangle formation show on my chart, ready for a massive explosion. 

At the start of this week, we saw this pair break through the major monthly resistance barrier of 110.00, only to reject this level and close back below on the daily chart.  We haven't seen much movement today, price action has been bouncing between the range of 109.80-110.00. 

We can see the price has started to form lower-highs, as indicated by the descending trend line displayed on my chart. This has been steadily squeezing price towards the nose of the triangle, ready for the next major move. 

Should we manage to break out and above the triangle formation, we will see a fast move higher towards 110.35 and 110.60; continuing the recent bullish move even higher. However, if we manage to break clear of the support of 109.70-80 a fast sell-off and decline back towards 109.000 is on the cards...


Comments

  • USD/JPY: Ready to Explode, Higher or Lower?
    jorge says:
    10/02/2019

    we can see in the monthly time frame a hammer candlestick pattern, if a breakout of 110.000 resistance happens we could expect a large bullish movement

  • USD/JPY: Ready to Explode, Higher or Lower?
    Kyle says:
    07/02/2019

    would the rejection earlier on in the week suggest that bears are favorite for the breakout as it couldn't hold above the 110.000 showing weak bullish momentum?

  • USD/JPY: Ready to Explode, Higher or Lower?
    edgetraderplus says:
    07/02/2019

    Why explode either way? I do not chart pairs, but looking at the individual charts, the yen could retrace some of its recent losses, and the fiat $ could retrace some of its recent gains. Neither individual chart looks like there could be an explosive move, either way. The "either/or" scenario omitted the possibility of more of the same in a protracted sideways pattern. Not an expert or experienced in fx, but the implications of an "explosive" potential caught me attention, which is why I looked over the individual charts. Anything can happen...

  • USD/JPY: Ready to Explode, Higher or Lower?
    Mojtaba Rasooli says:
    05/02/2019

    On point analysis! Simple and informative!

  • USD/JPY: Ready to Explode, Higher or Lower?
    joel says:
    05/02/2019

    Wait for it

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