Bottom line: USDJPY bearish structure is intact until 112.40 resistance is in place. A lower high at 110.30 needs to hold for bears to remain in control.
Technical Analysis:
USDJPY bears are back in control after prices dropped over 150 pips through last week. A lower high was carved at 110.30 on January 16, 2020 which seems to be holding well. Any intraday rallies from here are also expected to remain well capped below 110.30. The short term waves might have completed a lower degree wave I between 110.30 and 108.72 or might complete at 108.50 levels. We can expect a counter trend rally towards 109.30/60 levels, before the drop could resume further. Looking at the larger degree wave structure, USDJPY has already produced a 5-3 structure. The drop from 112.40 through 104.50 was seen in 5 waves, labelled as Wave (1). Subsequent rally was in 3 waves towards 110.30, marked as Wave (2). Also note that Wave (2) travelled or retraced up to 61.8% of Wave (1), as prices terminated at 110.30 levels. If the above larger counts are correct, USDJPY should be ideally poised to produce another 5 waves drop from 110.30 levels. As the sub waves unfold lower, prices should drop below 104.50 levels, going forward. A high probable trade setup from here is to remain short and look to add further on pullbacks, with protective stop loss at 112.40 and projected targets below 104.50 respectively. The risk shall be reduced to 110.30 levels, once we see a price break below 107.65, the January 08, 2020 lows. Be prepared for a corrective rally towards 109.50/70 levels at least, and it could be seen as an opportunity to initiate fresh short positions. USDJPY remains a good candidate to sell on rallies.
Prepared by
Harsh Japee, Technical Analyst.
USDJPY Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
