USDJPY Jan 21 to Jan 25 Outlook

By News Robot

Lawrence’s Comment

Recap
Pullback to Y-0 as expected. Rally from there and printed new high consistent with my bullish bias. Cannot ask for more. Closed the week at week high and above Y+1.

Outlook
Difficult trading ahead this week. The continuous news feeding from Japan is expected so the bullish chart formation was just a reflection of the reality. The problem with this continuous push to devalue yen so quickly, however, will backfire.

There is no real support built beneath 87. The continuous climb also created a supoprt trendline that becomes very important. A break of 87 can lead to quick flush below 86 and in turn induce a massive selloff. That will be the tell of the uptrend is over on monthly basis.

For coming week, a spike high that fails to clear Y+2 will give us a pullback to at least B-0 and likely Y-0.

Share

  • You must be logged in to comment. Log in