The US Dollar continued to move higher against the Japanese Yen, and traded above the 125.00 level. However, it looks like we are about to see a major top in USDJPY as there are many warning signs emerging. If we see the monthly chart, then we can notice that a similar rally happened in the late 1190’s when the pair fell sharply. Also, the pair is facing a major resistance around 126.00-127.00 where sellers might take a stand.
On the Weekly chart, there is a wave duplication pattern forming, which might stall the upside in the USDJPY pair. So, I think looking for a sell opportunity on the lower timeframe might be a good option.
Technical Analysis
Monthly – Critical resistance and similar wave formation on the monthly chart.
Weekly – Wave duplication is also around the highlighted resistance area.
Entry:
H4 – We can enter a sell trade for the USDJPY pair once the pair spikes higher to trade near the highlighted trend line and creates a bearish divergence.
Target 1: 124.00
Target 2: 122.00
Stop Loss: Above the high created before entering into the trade.
Video Explanation:
Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of December…
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise…
Hi Traders! EURAUD short term forecast and technical analysis post is here. We do our…
Hi Traders! GBPCHF short term forecast follow-up and update is here. On October 3th, 2024…
Hi Traders! AUDJPY short term forecast and technical analysis post is here. We do our…
Hi Traders! GBPCAD short term forecast update and follow up is here. On November 26th,…