Russia just attacked the eastern side of Ukraine in the Asian session. Gold shot up around 60 dollars in the Asian to London session. This move up was drastic and fast paced. All around the board, the traders have panicked given the state of affairs. In this case, USDJPY tends to depreciate as the safer havens of Yen need to strengthen up.

Market needs to tap at the resistance level at 115.10. This level needs to be respected in order for the market to continue down given the Yen strength. Market has formed lower lows and lower highs.

Market is in a descending channel, and is ranging between the channel. The resistance trendline has been tapped 3 times and now rejected by the price action. Once it retraces back to the resistance, we will take a short position. This will in line with the trendline.

The retracement is in confluence with the resistance level. Although this retracement is not the ideal golden level, but we will consider it strong given the fact its in line with the resistance.

Both the EMA’s are in a bearish trend, but have a bearish death cross. This bearish EMA has been broken out for sells and needs a retest which we will get at the resistance level. Once that happens, we will have two factors for confirmations.

RSI and CCI are heading back from over sold region. Once it reaches the neutralized levels, and the market is at resistance, we can have multiple confluences for the short on USDJPY

The Russian Ukraine saga is fundamentally causing high volume moves. This way we have to be vary of the fact that anything happen.

USDJPY sells from 115.10

Feb 24 2022

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