• 151 days Could Crypto Overtake Traditional Investment?
  • 156 days Americans Still Quitting Jobs At Record Pace
  • 157 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 161 days Is The Dollar Too Strong?
  • 161 days Big Tech Disappoints Investors on Earnings Calls
  • 162 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 163 days China Is Quietly Trying To Distance Itself From Russia
  • 164 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 168 days Crypto Investors Won Big In 2021
  • 168 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 169 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 171 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 171 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 175 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 176 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 176 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 178 days Are NFTs About To Take Over Gaming?
  • 179 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 182 days What’s Causing Inflation In The United States?
  • 183 days Intel Joins Russian Exodus as Chip Shortage Digs In
  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