Monday 18 July 2016

Will USD/JPY Start Retracing?




After the huge drop that followed the Brexit referendum USD/JPY reached the support at 100.00 and could not break below it, then started moving to the upside and it has almost recovered the aforementioned drop, reaching a high at 106.31. The question now is whether or not USD/JPY will continue moving to the upside, because the pair has formed a shooting star candlestick on the daily time-frame below the resistance at 106.31, which is an indication that we may see a retracement in the near future. If the signal proves false, however, and the pair breaks above 106.31 there will likely be a further move to the upside towards the high at 106.80, and if it breaks out above that level as well we will likely see it reach 107.80, which is (MA)89 on the daily time-frame.

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