USDJPY went for a correction under H4 and D1 time frames - starting from 2nd July and ending with its corrective structure being completed on 8th July at 109.52 which was weekly strong support along with EMA50 - above which the pair gained ground quickly the next day. Dollar has made three white soldiers which might trigger a short term reversal to the pair with daily resistance on top supporting this stance. USDJPY was able to trade above weekly pivot line while struggling with the daily and monthly pivot at current market price. USD/JPY is still threatening a major long-term base despite the recent pullback. However, this would only be confirmed above 112.40. If confirmed, this would open up a move to the next key resistance zone at 114.55. USD/JPY weakness has been contained as looked for by its 55-day average and price support at 109.75/60 and we look for a retest of major resistance at 111.66/112.40 – the YTD and key highs from 2019 and 2019 and associated ‘neckline.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

PPI and Core PPI figures turned out to be very strong which couldve favoured the dollar and provided a breakout above our daily resistance but 110.80 price action mustve been too much to enter inside its bullish channel again . The current move is indicating that EMA50 will decide if its just a manipulation to fill the order book or Jerome Powell will provide some bullish projections on dollar. For now as much as the data from yestarday and todays global economic calender are in support of hawkish dollar, the covid 19 and the reality at back end seems to be different than the current market psychology. If a bullish closing above EMA50 is provided, than 61.8%fibb will be our second fractal confirmation to buy dollar but as we know that the daily resistance contains a stronger price action, we would have to wait for a breakout to finalise the structures mood of further directions. 

Has Dollar been refueled !

Jul 14 2021