The USD has begun the week on the front foot strengthening against the other majors. On Thursday, March 30, it remains the strongest currency bar the JPY. A few harmonic patterns are emerging on the USD. A USDCHF and USDJPY Harmonic Analysis will show what we may expect on those pairs in the sessions ahead.
30 March, AtoZForex – We may see a reversal on the USDJPY correction anytime soon. The daily chart candles on Monday and Tuesday, March 27 and 28 closed as bullish Tweezers. The 110.00/ 110.50 level appears to be a good level for buyers to come in.
A bullish shark harmonic pattern has printed on the USDJPY daily chart. The pattern, which begun on February 7 has completed an XABCD formation. The PRZ, around the 110.00 psychological support may end the bearish correction.
The bullish shark harmonic pattern is much clearer on the 4 hour chart. The 4 hour chart also shows a potential inverse head and shoulder formation. The neckline at 111.50 is the line in the sand. Above that level, a buy order may be placed.
USDCHF and USDJPY Harmonic Analysis: Possible seff-off on USDCHF?
On the USDCHF, a bearish harmonic pattern has formed on both the 4 hour and 1 hour charts. The 0.9978 level is key in this regard. It doubles as both a bearish shark harmonic pattern on the 4 hour and a bearish butterfly pattern on the 1 hour chart.
USDCHF and USDJPY Harmonic Analysis: Possible entry and exit levels
On the USDJPY, the breakout of the inverse head and shoulder formation is key. Once the breakout is confirmed a long trade can be initiated. A close above 111.50 can be considered as a breakout. if that happens a long trade with a 100 pip stop and a 250 pip target can be placed.
On the USDCHF pair, a short order below 0.9950 neckline can be placed with a 60 pip stop and a 100 pip target.
As always, don't risk above 2% of your equity per trade.
Think we missed something on USDCHF and USDJPY Harmonic Analysis? Let us know in the comments section below.