USD/JPY Showing A Bearish Pennant Confluence
Admirals | Aug 27, 2015 06:32AM ET
USD/JPY reached 120.50 after a big spike down preceded by PBOC decision to reduce its interest rate and ease bank reserve requirements. Technically a huge drop, which we see on USD/JPY chart, is actually a BEARISH PENNANT and short to mid term, the pair could bounce from 120.50 targeting even 114.40 levels (!). Bearish pennant can be seen on H4 chart, but zooming in, we can see it better on H1 chart. Adding the flagpole distance to the projected distance from breakout and we get 114.40.
Weekly cam pivots show L4/L5 confluence with a bearish pennant adding one more part of chart confluence. The projected move is short to mid term. Intraday shorts could reach 119.10 zone. Have in mind that the move is valid as long as 121.50 stands strong.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.