Previous USDJPY analysis was respected by the market and the pair behaved exactly as planned.
We may get a possible top on US Equities either on 20/21 April, however if it continues to grind higher, which is also possible, then the next key dates are 10/11 May. And in May, its usually the same old saying in Equities, "Sell in May and go away".
However, in next few days we can also see selling in equities during late Asia session (Nikkei) that may continue during US session too.
If any see any drops in Equities I assume it will largely be led by high valuations on US Equities, along with a possible change in direction in Oil price due to OPEC and Russia's failed cutbacks. However, sentiment at present is largely risk-on, so it is possible US Equities may be moving to new all time highs. Don’t forget that USDJPY is highly correlated to equities as AUDJPY and most Yen pairs.
Technically pay attention to USDJPY to 109.40 where we could see now moment sellers but if the level breaks last line of bearish defense is 109.75-95 zone.(H4, 78.6,previous breakout retest point). Rejection could lead towards 108.00 and 107.61 that is very important level as below we should see 106.65.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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