USD/JPY Weekly forecast

24 Des 2018

Following the neckline break of the head and shoulder pattern last week, we saw price melting below the weekly support target. Even though our chart analysis is showing signs of a bearish reversal on the weekly chart, we still need further price information to determine weather this will actually be followed by more selling in the coming weeks. There’s a few possibilities; firstly looking at current price action we can see that the week ended with the bulls overwhelming the bears temporarily to close the daily candle stick as a doji (highlighted), this could signal the weakness of the bears. The current bearish movement on the daily may be short-lived and we could see the bulls starting to have more dominance in the coming days