Bottom line:  USDJPY looking to produce a bullish break from the proposed triangle consolidation here. A break above 112.40 would confirm.

Technical Analysis:

USDJPY bulls are testing a triangle resistance line near 111.70/80 at this point in writing. A confirmed break here is expected to produce a bullish break out that might last for several weeks and months going forward. We have been presenting a potential bearish view for the USDJPY until 112.40 resistance remains intact. But looking at the triangle counts again, Wave E might have been a false breakout around 104.50 levels or Wave E would have been a triangle itself. It remains to be seen how price action behaves but probabilities are turning towards a bullish breakout. A break above 112.42 would confirm that USDJPY could be good to consider longs on dips from here. An alternate count could be the USDJPY fails to push beyond triangle resistance and produces a bearish bounce. In that case, expect prices to pullback lower again towards the 107.00/108.00 handle before deciding further direction. Let us re-look at a multi-year triangle presented here: Since 126.00 highs, the USDJPY had produced a series of 3 waves starting Wave A, which terminated close to 99.00 levels. Either Wave E terminated at 104.50 levels unfolding as a w-x-y or it is a triangle itself. Either ways, we can expect a bullish breakout from current levels or after a dip towards 108.00 (wave e of Wave E). We would remain keen and monitor price action around current levels (111.60/70), while USDJPY tests triangle resistance. A bearish reversal here would indicate a potential drop towards 108.00 at least, while a break above 112.40 would confirm bullish breakout. Traders might be willing to stay aside for now and allow price action to unfold at the triangle resistance.

Prepared by

Harsh Japee, Technical Analyst.

USDJPY Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。