1-2-3 buy off the previous low (the yellow zone) made a good run but failed to take out the previous week high, resulting in a quick snap back to the low of the week again. Classic 2-way test of the previous extremes as mentioned in STOPD.
Next week outlook
Both the weekly and monthly project has projected 50% downside expansion to the 79.50 area (red zone). This area is also the long term support area that has not been touched for many years. How USDJPY reacts at this zone will be critical.
Lawrence's Comment
Recap
Unfolded exactly as mentioned last week - tried to rally and stalled at Y-0. Eventually closed the week at Y-1.
Outlook
More weaknesses is expected. A test of B-2 ...
USDJPY Week of Nov 1 – 5 Outlook
Recap of past week
1-2-3 buy off the previous low (the yellow zone) made a good run but failed to take out the previous week high, resulting in a quick snap back to the low of the week again. Classic 2-way test of the previous extremes as mentioned in STOPD.
Next week outlook
Both the weekly and monthly project has projected 50% downside expansion to the 79.50 area (red zone). This area is also the long term support area that has not been touched for many years. How USDJPY reacts at this zone will be critical.
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