USD/JPY is testing another bullish breakout and that’s been a challenging backdrop for the pair over the past five months as several bull traps have built.
And like I looked at in Thursday’s video, traders should be careful of reading too much into a little price action. Last Thursday, it was the four-day slide that saw many getting bearish in USD/JPY. But, as I pointed out in the video, price was at range support, and the longer-term bias remained bullish.
The Thursday Video
The Friday Video (as the morning star was nearing completion):
Now, the pair is back above the 150.00 level and this has been a tough spot for the pair, and there’s even some historical context around that price.
For bulls, there’s now a few different spots to look to for higher-low support potential which can keep the door open for bullish continuation.
For JPY-weakness, I still favor EUR/JPY and the setup from last Thursday has filled in beautifully. Support held at the Fibonacci level with a doji on Thursday, and then a morning star confirmed on Friday. That has so far led to a break above the psychological level at 175.00 that was previously problematic in the pair.
GBP/JPY is similarly in the midst of a strong move and the reference level there is the 200-handle.
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Thanks for your analysis every week it’s really nice and encouraging ❤❤