A couple weeks ago we highlighted an area of support below 100.6 which could act as a magnet for USD/JPY so long as it remained under pressure below 102.85. After failing to overcome that resistance last week, USD/JPY now looks determined to test early February lows below 101.
We believe that these lows will not hold but that the support area just below remains a very tempting springboard for bulls and short-term bears looking to cover alike. If that scenario materialises we will revisit appropriate long or short opportunities according to price action.
Edit: There is an error on the chart - "inverted hammer" should read "shooting star".
We believe that these lows will not hold but that the support area just below remains a very tempting springboard for bulls and short-term bears looking to cover alike. If that scenario materialises we will revisit appropriate long or short opportunities according to price action.
Edit: There is an error on the chart - "inverted hammer" should read "shooting star".