• 8 hours America’s Workforce Elderly Workforce To Double By 2028
  • 14 hours Toyota Tests Solar-Powered Prius
  • 1 day Why The Gold Rally Flatlined
  • 2 days The Uranium Sector Can’t Catch A Break
  • 2 days Upcoming Fed Meeting Has Investors On Edge
  • 3 days Global Gold Sector Outlines Responsible Mining Principles
  • 3 days China’s Giant Vampire Fund Loses $120B
  • 4 days McDonalds To Roll Out Robot Drive-Thru Clerks
  • 4 days Savvy Investors Are Betting Big On This Little Data Company
  • 4 days How The Government Is Wasting Tax Money This Year
  • 4 days Supply Concerns Halt Expansion On Tianqi Lithium Plant
  • 5 days The World’s Biggest IPO Is Almost Here
  • 5 days The Relatively Of Money And Happiness
  • 5 days Wall Street Unfazed By Recession Fears
  • 6 days SoftBank Urges WeWork To Pause IPO Plans
  • 6 days Anti-Aging Market To Hit $55 Billion
  • 6 days JPM, Morgan Stanley Take Advisory Roles In Aramco IPO
  • 7 days Are Bonds In A Bubble?
  • 7 days The Unknown Media Giant Taking The World By Storm
  • 8 days From Millennial To Millionaire With One Simple Trick
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

USDJPY At Critical Juncture

Previously, I thought the high for the USDJPY was in place and a correction was now underway. It still may be. Price is now at a critical juncture and the potential exists for one last marginal false break high. Let's examine the situation using the weekly chart.


USDJPY Weekly Chart

USDJPY Weekly Chart

We can see there are currently two consecutive highs in place and there exists the possibility of a "three strikes and you're out" top to form. This is denoted by the numbers 1 to 3.

I have drawn a Fibonacci Fan which shows the second strike high was at resistance from the 23.6% angle. This occurred exactly as forecast and I believed that to be the final high. However, price has subsequently found solid support at the next 38.6% angle and a new high now looks to have real potential before price comes back down to break clearly below this 38.2% angle.

The Bollinger Bands show price finding support at the middle band and one last hurrah move back to the upper band looks to be on the cards.

The PSAR indicator shows price currently finding resistance from the dots which are just above price and will be around 125.30 this coming week. This is the critical juncture. Price busting above this level will most probably see price crack to new highs above 125.85.

The RSI show a triple bearish divergence already in place while one last marginal high would most likely set up a quadruple bearish divergence.

The Stochastic indicator is currently bullish although one solid week down would alter that.

The Momentum indicator show momentum declining since the first strike high so whichever way you look at it a correction is indeed imminent.

Summing up, price is now at a critical juncture with the potential for one last marginal high before a serious correction occurs. While I previously favoured the final high to be in place I now have doubts about that and would prefer to see one last high. Either way, this week should tell the tale.

 

Back to homepage

Leave a comment

Leave a comment