- USD / JPY designed to break above 110.50 before reversing
- You are looking for a break below 108.50 as the pattern consolidates
USAD /JPY despite recent weakness, it is consolidating over 110.0 this morning US dollar as it is difficult for the Japanese yen to find support, as Covid-19 spreads rapidly throughout Japan. I have been keeping an eye on a couple for some time now because I find the technical design very attractive because the last part of the symmetrical pattern is underway, which can be seen USD/ JPY break in the following weeks below 108.50.
USD / JPY per day schedule
The first half of the pattern was extended for two months, reaching a peak in the first week of July, when the turnaround began, which is the second part of the pattern. I think this has caught my eye mainly because both the ascent and the retreat follow a very similar pattern, with higher or lower lows reaching, but not in a continuous form.
The 5 main peaks of the first half of the pattern (marked with a black circle) all saw a retreat before reaching a new high, and in most cases the correction went almost as far as the previous low, allowing further bullish momentum to accumulate. We also see this on the other side of the pattern, where the last three withdrawals (marked with a reading circle) all saw a corrective movement above 110.50 before they could stretch lower.
Now we see that this is happening again, and despite the fact that the adjustment will take more time this time, I will be looking for a break over the next few days that exceeds 110.50 and bounces back below 108.70, with a target of around 108.50. .
– Written by Daniela Sabin Hathorn, market analyst
Follow Daniela on Twitter @HathornSabin