The outlook for USDJPY is still a strong bullish push to the upside with ADX point to the upside. the next resistance is at 134.66 which was the last high since 2001. expect the USDJPY to reach the previous high of 121.833 in the coming months with the renewed monetary policy of the Japanese Central Bank. Last month’s close was a weak bearish candle as was predicted in the previous month’s analysis. The next candle might be an engulfing candle or a continuation to the downside before retracing back to 120. Bear this in mind as you trade, traders!
The W1 chart shows a drop in trend as well as a formation of several long tailed candles which indicate market exhaustion. USD markets last month were overbought, thus it is not so unexpected that there was a slight retracement. In the next week, expect either a correction to the upside or a continuation to the downside. The next support is at the 23.6 retracement level of 110.914 or the previous high of 121.833.
The D1 chart shows an inconclusive market which has been ranging for the past week. It has a slightly bearish sentiment to it as the price is slowly hitting the downside. However, with some volatile news coming out in the next week, expect a breakout to happen. It will happen shortly, so stay tuned!
The H4 chart shows once again, a descending triangle. The last candle last week was a weak bullish candle at the strong support of 117.3. for those who are on the opinion that the upside will happen soon, this is an incredibly good support. The Stocastics. Oscillator shows that the USDJPY is in the oversold region, so a buy entry would be appropriate here. Additionally, the ADX shows a weak and inconclusive movement, despite starting to point upwards.
News tomorrow include the ISM Manufacturing PMI, which will occur late in the day, so protect your trades before the news!