The weekly USDJPY has closed on a very weak note.
The USDJPY has closed down for the week forming a big red bar. Usually this is followed by many bigger red bars. A tight channel shows that channel support may well be at 103.60 but that is too early to tell. The initial target is 106 - 105.50 from the head and shoulders pattern from the recent highs on 2015-06-04 to 2016-01-20.
However, take note that the USDJPY has now reached the end of the Bollinger band on the weekly. Which denotes oversold conditions.
On the daily USDJPY, we also see that it has reached the end of the Bollinger band.
On the daily, we also see a bearish graveyard doji. Usually, a hammer is preferred for a turn, so next week may gun for lower before higher. I don't know.
Looking at other JPY pairs, we see some similarities of price for the JPY being on support.
NZDJPY
NZDJPY is on a region of support. Price has bounced from there multiple times.
So caution is important.
AUDJPY
The AUDJPY is in a longer term channel from 2014-11-21 and has hit the 61.8% retracement of the recent low to high. Price has also moved out of the Bollinger band on the daily. Forming an inverted hammer.
CADJPY
CADJPY also in a longer term down channel and has turned from both testing the underside of a trendline from 2011-10-03 to 2012-05-28 and also a channel resistance from 2015-06-15.
Price has moved to test the treadline of the most recent low to high and could trend lower.
GBPJPY
The GBPJPY also in a down channel and tested previous support on friday. Note that price is outside of the daily Bollinger band and an inverted hammer is formed.
EURJPY
EURJPY in a down channel and testing weekly resistance turned support on 2014-04-11, so caution may be taken here.
On the daily an inverted hammer has formed. Price is outside of the daily Bollinger band.
The XXXJPY pairs look very bearish, and I think we are near some sort of support. So I will look to short on a bounce somewhere.
No comments:
Post a Comment