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#1 ⇑ Haut ⇑ 26-02-2013 09:41:09
- Bruno
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USD/JPY : Beginning of the big correction?
The pair USD/JPY opened the week on a bullish gap. The price has tested again the resistance at 94.18 but a powerful bearish rally has occurred due to the uncertainty in Italy. Indeed, the Yen is considered as a safe haven by investors. The pair has broken all support levels and it is the break of 92.37 which gave us the sell signal. A pullback already occured on this level. The pair has validated its medium term bullish channel output (brown lines) and is moving towards the long-term bullish slant (purple line).
We now recommend to trade only short positions as far as 93 is resistance. A break of 91 will give a new sell signal. This level corresponds to the bullish slant. Thereafter, the price should also break the support at 90.45 to continue its downtrend towards 88.
In case of return above 93 (lower limit of the former uptrend channel), we will be neutral between this level and 94.18.
USD/JPY 4h chart
We now recommend to trade only short positions as far as 93 is resistance. A break of 91 will give a new sell signal. This level corresponds to the bullish slant. Thereafter, the price should also break the support at 90.45 to continue its downtrend towards 88.
In case of return above 93 (lower limit of the former uptrend channel), we will be neutral between this level and 94.18.
USD/JPY 4h chart
USD/JPY 1h chart
#2 ⇑ Haut ⇑ 04-03-2013 09:38:33
- Bruno
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Re: USD/JPY : Beginning of the big correction?
The huge correction seems aborted for the time being. The pair USD/JPY has failed to continue its downward movement below 91.50. A rebound set up and the price is now testing the lower limit of the former short term triangle as resistance (blue line) towards 93.50.
We are therefore neutral for the moment. We advise to wait an output of the range between the major support at 92.50 and the key resistance gathering all the last highs at 94.14:
- Only long positions in case of exit from the top. The price will then be back in its former medium term uptrend channel (brown lines). The next objective would be at 95.
- Only short positions in case of breakout of 92.50. The scenario of a large correction would be again up to date. A break of 91.50 would confirm this scenario. This level corresponds to the last low but also the long-term bullish slant (purple line).
USD/JPY 4h chart
We are therefore neutral for the moment. We advise to wait an output of the range between the major support at 92.50 and the key resistance gathering all the last highs at 94.14:
- Only long positions in case of exit from the top. The price will then be back in its former medium term uptrend channel (brown lines). The next objective would be at 95.
- Only short positions in case of breakout of 92.50. The scenario of a large correction would be again up to date. A break of 91.50 would confirm this scenario. This level corresponds to the last low but also the long-term bullish slant (purple line).
USD/JPY 4h chart
USD/JPY 1h chart
