Upon factorising two fundamental events, US GDP and JPY’s policy decision, the counter wiggled both sides.
It indicates uncertainty in the counter as both the events emanated positive outlook for their respective economy.
Then the DXY index went through a profit booking rally, owing to which USD/JPY also slid.
But, now the counter has two short-term reversal patterns.
One, ABCD pattern which completes at 111.184 zone.
Second, the cypher pattern which also completes at the same point.
The zone is also a price action support zone.
And the RSI indicator is currently printing an oversold reading in the hourly chart, which indicates exhaustion in the counter for the short-term.
The confluence of supports only strengthens the bullish argument.
Hence, we expect the pair and take support and make an upswing to the resistance of 111.648 for now.
It indicates uncertainty in the counter as both the events emanated positive outlook for their respective economy.
Then the DXY index went through a profit booking rally, owing to which USD/JPY also slid.
But, now the counter has two short-term reversal patterns.
One, ABCD pattern which completes at 111.184 zone.
Second, the cypher pattern which also completes at the same point.
The zone is also a price action support zone.
And the RSI indicator is currently printing an oversold reading in the hourly chart, which indicates exhaustion in the counter for the short-term.
The confluence of supports only strengthens the bullish argument.
Hence, we expect the pair and take support and make an upswing to the resistance of 111.648 for now.