Autochartist Forecast
USD/JPY Forms Falling Wedge as Risk Appetite is tested
Each morning there is slight fear as the last weeks of the August doldrums lead into September. Next month normal participation and better volume is expected to resume. Taking the trends that occur firstly during summer and more importantly during the last two weeks of summer as nothing more than a glimpse of short term psychology is ill advised.
This is the reason for so much confusion surrounding the equities markets. When there is fear or risk aversion in the markets traders buy U.S. Dollars, and if there is risk appetite, they buy equities. The overall mood of the last three months has been bullish on equities and that means bearish on the U.S. Dollar. The USD/JPY chart has been heading slightly lower but more or less sideways since May/June.
Intraday, the 240 minute chart is showing the current mark down cycle which is an ideal environment for a Wedge or Channel. Autochartist has alerted a Continuation Falling Wedge Emerging pattern that is slowly climbing towards the decision level at the green downtrend line (X). Prices are testing the resistance at 94.50 and the support at the 94.00 major psychological level.
The Initial Trend (Y) is neither low nor high which indicates that a trend is present but most likely weakening. With yesterday's Dow close of 61 points higher and the current pre-market slightly positive, the USD/JPY chart will be showing a bounce on the shorter term intraday chart, and flatten out the downtrend on a longer term intraday chart like a 240 minute. The set up here is mostly based upon the the green downtrend line resistance (X) which will be both swing level for a corrective short, and if pierced, a breakout level for a buy. Keep an eye on 94.50. The breakdown level (Z) at the downtrend line support will also be an option if USD/JPY prices have enough downward momentum to pierce the 93.50 support.
For further information on these and other chart patterns, visit http://www.autochartist.com
This is the reason for so much confusion surrounding the equities markets. When there is fear or risk aversion in the markets traders buy U.S. Dollars, and if there is risk appetite, they buy equities. The overall mood of the last three months has been bullish on equities and that means bearish on the U.S. Dollar. The USD/JPY chart has been heading slightly lower but more or less sideways since May/June.
Intraday, the 240 minute chart is showing the current mark down cycle which is an ideal environment for a Wedge or Channel. Autochartist has alerted a Continuation Falling Wedge Emerging pattern that is slowly climbing towards the decision level at the green downtrend line (X). Prices are testing the resistance at 94.50 and the support at the 94.00 major psychological level.
The Initial Trend (Y) is neither low nor high which indicates that a trend is present but most likely weakening. With yesterday's Dow close of 61 points higher and the current pre-market slightly positive, the USD/JPY chart will be showing a bounce on the shorter term intraday chart, and flatten out the downtrend on a longer term intraday chart like a 240 minute. The set up here is mostly based upon the the green downtrend line resistance (X) which will be both swing level for a corrective short, and if pierced, a breakout level for a buy. Keep an eye on 94.50. The breakdown level (Z) at the downtrend line support will also be an option if USD/JPY prices have enough downward momentum to pierce the 93.50 support.
For further information on these and other chart patterns, visit http://www.autochartist.com
20 August | 
0 comments
0 comments
