USDJPY SHOWING SIGNS OF WEAKNESS

Launch Chart
farhan fazal
USDJPY
·
Aug 12 2021
snapshot
MARKET FORECAST :

According to our analysis published on 9th August with bullish sentiments - we knew that focusing on news events from last week like Non farm payrolls, as most retail traders were looking forward to the release of highly anticipated figures that provides insight into the instignated stimulus to the market. The NFP would have a huge bullish impact on dollar while creating bearish atmosphere in opposite side of currency pairs and some major commodities like gold. We expected that the news would have a high impact on dollar in terms of gaining its strength and breaking above 111.0 price action but took a pause at 110.20 as friday closing on 30th July. USDJPY was trading in between our weekly and daily pivots i.e 110.20-110.13 with relative strength index retrieving from level 70. There were high chances of the market still being in wave 3 rather than expecting an end to 5 wave bullish structure in four hourly time frame. But on the daily chart we had some mixed sentiments because that couldve been just the starting of a bullish wave structure.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Data release from previous weak helped boosting king dollar enough to land it at 110.80, as our targeted destination was 111.0, we can see that our weekly resistance on top at 110.75 served as a strong barrier from letting dollar doing so. In four hourly chart US dollar versus Japanese Yen entered overbought conditions and to correct itself - went for a bearish reversal which was caused by weak dollar data this weak and golds bullish pullback. As we can see USDJPY is still inside the ichimoku cloud in daily, there are chances for the pair to fall back down to 109.80 before anticipating any further bullish stance. According to our previous analysis,110.80-111.0 were shown as prominent strong resistances and price actions with very low supply and demand in this zone which was expected to cause bulls a temporary hurdle but from current market scenario it seems that the bearish momentum will be lasting for a while and we will be witnessing a sharp drop in king dollar.