This rapid change in sentiment was due to investors re-gaining confidence in global markets and thus relocating their funds from safe-haven currencies, including the Japanese Yen. The Greenback dashed through the 55– and 100-hour SMAs and the weekly pivot point during the previous session and, at the time of this analysis, was testing the 200-hour moving average.
This line is located near the weekly resistance and the prevailing trend-line circa 106.00. It is likely that bulls do not have sufficient strength to overcome this resistance after yesterday's surge, thus allowing for a minor decline today. A possible downside target is the 55-hour SMA at 105.00.
Chart: USD/JPY H4
The pair rebound from the low.
ReplyDeleteThe move to the downside will likely continue.
ReplyDeleteA good post with good insights into the situation.
ReplyDeleteAn upward correction could be on the way.
ReplyDeleteGood post. Very helpful.
ReplyDeleteInteresting article.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDelete