Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The USD/JPY shows a possible reverse head and shoulder in development.
- This happened after the market cracked below 82.00. However, the market pushed the price back up above 82.00. (The previous US session closed at 82.00).
- Now, we have a reverse head and shoulder if the market can break above the neckline which is around 82.30.
- The USD/JPY in the 4H chart looks like it should have completed a retracement pattern. However, the market is still dominated by bears since the rally to start the year.
- For the bullish scenario to open up again, we need to see the market break above 82.50 area first of all, and then break above the declining channel resistance lines.
- That looks at the target of 84.50 in the short-term, and possibly 86.00 if that is broken. Another clue for the upside is if the current support 82.00 does hold, and the 4H RSI does stay above 30. That would show a bit of bullish bias.
- On the downside, if the market accelerates below 82.00, it may test the rising triangle support we see in the daily chart below.
Is the USD/JPY done with its corrective patter? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist